Euro Holds Gain As Leaders Prepare For Debt Crisis Talks

Here we go again…

The euro rose against the dollar, extending a gain from last week, amid optimism Europe’s leaders meeting this week will signal support for Greece and outline fresh measures to combat the region’s debt crisis.

Europe’s shared currency rose toward a six-week high against the yen after Germany’s Spiegel magazine reported the European Central Bank’s governing council may decide at its next gathering to set yield limits on each country’s debt. The dollar fell from the most in more than a month against Japan’s currency and the Australian dollar climbed against all of its major counterparts tracked by Bloomberg amid stronger demand for higher-yielding assets.

“The market is concentrating on political news,” said Ulrich Leuchtmann, head of currency strategy at Commerzbank AG inFrankfurt. “There’s a lot of negative news priced in about Greece and if the politicians sound constructive on that it may support the euro. There are also a lot of rumors about what the ECB might do.”

Europe’s shared currency advanced 0.1 percent to $1.2351 at 8:51 a.m. London time after climbing 0.4 percent last week. It added 0.1 percent to 98.19 yen after rising 2 percent in the five days ended Aug. 17. The dollar weakened 0.1 percent to 79.50 yen after earlier touching 79.66, the strongest since July 12. The Australian dollar rose 0.3 percent to $1.0455.

 

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