BLBG: Euro Strengthens as Greek Politicians Said to Have Reached Austerity Deal
The euro rose toward a two-month high against the dollar and the yen after Greek politicians were said to have reached an agreement on austerity measures needed to obtain a bailout.
The 17-nation currency strengthened for a third day versus the yen after the European Central Bank left interest rates on hold at a policy meeting. Greek Finance Minister Evangelos Venizelos headed to Brussels to hold talks with euro-area finance ministers. The pound rose against all its major counterparts after the Bank of England said it would increase its bond-buying program by less than some economists forecast.
The euro rose “on the back of headlines saying Greek politicians have reached an austerity deal,” said Michael Sneyd, a currency strategist at BNP Paribas SA in London.
The euro gained 0.1 percent to $1.3274 at 1:30 p.m. London time after rising to $1.3313, the strongest since Dec. 12. The common currency gained 0.4 percent to 102.61 yen after reaching 102.77 yen, the strongest since Dec. 13. The yen dropped 0.3 percent to 77.27 per dollar.
The pound appreciated 0.1 percent to 83.76 pence per euro, and climbed 0.3 percent to $1.5866.
An announcement from Prime Minister Lucas Papademos’s office is expected shortly, an unnamed government official said by telephone.
To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
