Joined Nov 11, 2007
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The Euro Hits a Six Week High as Merkel Backs the ECB Bailout Plan

“The euro rose to a six-week high versus the yen as Germany signaled its support for aEuropean Central Bank approach to resolve the debt crisis.

The shared currency is set to complete five-day gains against all 16 of its major counterparts before German Chancellor Angela Merkel meets French President Francois Hollande on Aug. 23 and Greek Prime Minister Antonis Samaras a day later. The yen headed for its biggest weekly loss in almost two months versus the greenback as the extra yield investors receive from U.S. securities over Japanese debt climbed. Singapore’s dollar weakened as exports rose at a slower pace.

“We’re starting to see the early signs of some real progress being made in the euro area,” saidAndrew Salter, a currency strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) “We do see the euro rebounding modestly over the next few months.”

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