MW: Dollar falls versus euro on improve crisis view
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — The euro rose against the dollar Thursday as debt talks in Greece appearing to be progressing satisfactorily and amid lingering optimism after the International Monetary Fund said it wants to boost its lending fund.
The dollar index DXY -0.30% , which measures the U.S. unit’s value compared to six currencies, fell to 80.210 from 80.540 late Wednesday in North American trade.
The euro EURUSD +0.39% rose to $1.2960 from $1.2852 late Wednesday.
“Evident over the last few days has been some consistent buying interest in the single currency,” said Michael Derks, chief strategist at FxPro in emailed comments. “Sovereign wealth funds have been on the bid recently, as have various traders who are becoming frustrated that their short positions are not delivering the goods.”
He said Wednesday’s comments from the IMF that it will likely push for another $500 billion in additional lending resources are helping to lift the tone for the euro. He said there was also a report in a German newspaper that German Chancellor Angela Merkel will float the idea of a euro-zone growth and competitiveness pact.
The euro rose along with European stock markets, with hopes Greece will reach a deal with private creditors over a key bond-swap deal also providing some support. Spain and France also largely pleased the markets with their debt auctions.
“It is just possible that the worm is turning for the euro, at least in the near term,” said Derks.
Against the yen, the dollar bought ÂĄ76.83 versus ÂĄ76.79 late Wednesday in North American trade.
The British pound rose to $1.5454 versus $1.5438 late Wednesday in North American trade.
