The euro surged against the greenback on Monday as European officials decided to take steps so that Greece could be able to avail bigger loans. The euro gained to 1.4305 against the US dollar as compared to 1.4290 on Friday’s North American trading session. The euro jumped 0.4 percent versus the Japanese Yen but slipped 0.1 percent versus the Swiss franc.
Director of currency research Kathy Lien from GFT commented, “The details out of the EU finance ministers’ summit has been slim but in principle, Germany, France and the [European Central Bank] have agreed that voluntary rollover of debt is the way to go, there is no question that it will be a challenge to convince bondholders to rollover their debt but with the right terms, it could happen,” she further added. “Investors are also hopefully that Greece will receive its fifth bailout tranche in a timely fashion.”
In the latest meeting ministers have approved the release of first trench of Greece’s $155 billion bailout package which amounts to $16.8 million. The next trench is expected to be approved by early July.
The British Pound also surged versus the US dollar to 1.6187 on Monday as compared to $1.6169 on late Friday.
The dollar index DXY which tracks the greenback’s performance against its major six rival currencies declined to 75.043 on Monday as compared to 75.472 on Friday’s late trading hours.
The US dollar however gained against the Japanese Yen to80.31 on Monday as compared to 80.08 on Friday. The Japanese unit remained under pressure as Japan’s trade deficit increase more than expectations. The country’s exports have declined by 10.3 percent since the tsunami of March 11th, 2011.
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