Can European Economy Return Strength to Euro?
The euro strengthened today after Greece auctioned the Treasury bills at the rate below that the European Union charged when it bailed Greece out of crisis.
Greece sold the Treasury bills for the amount of €1.625 billion at the yield of 4.65 percent, while the E.U. charged 5 percent. The European leaders urged the bank to attempt to raise the money themselves before turning to the state support in case the stress test, which performed to check the stability of the European banking system, would reveal the vulnerabilities. The euro weakened previously after the Moody’s Investors Service cut Portugal’s to A1.
The experts say that now the global community attention turned away from Europe to the U.S., which is experiencing its own problems. The downgrade of Portugal’s rating shows that it’s too early feel relief for Europe, though.
EUR/USD traded at 1.2703 as of 17:11 GMT after opening at 1.2595. EUR/JPY traded at about 112.29 up from the opening rate of 111.62.
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Earlier News About the Euro:
- Euro Drops vs. Dollar on Debt Crisis Concerns (2010-07-12)
- Euro Rises on Growth Outlook (2010-07-08)
- Euro Recovers Slightly as Equities Rise (2010-07-06)
- Euro Drops on Outlook for Interest Rates to Stay at Low Level (2010-07-05)
- Euro Rises on Optimism for European Fiscal System (2010-06-30)