BS: Euro Touches Nine-Day High Before Greece Meeting as Krone Rises
The euro touched a nine-day high against the dollar as euro-region finance ministers prepared to meet in Brussels to discuss ways to plug a 15-billion euro ($19 billion) hole in Greece’s finances.
Europe’s shared currency was little changed against the yen even as Moody’s Investors Service cut France’s top credit rating. The yen dropped for a fifth day against the dollar even after Bank of Japan (8301) Governor Masaaki Shirakawa said the opposition party’s proposals to weaken the currency are unrealistic. Norway’s krone climbed to the strongest in a week versus the greenback after data showed the nation’s economic expansion slowed less than estimated.
“This afternoon’s meeting is important, Greece remains an event risk for the euro,” said Kasper Kirkegaard, a senior currency strategist at Danske Bank A/S (DANSKE) in Copenhagen. “Norway’s GDP was slightly above expectations. There’s a bit of relief in the market.”
The euro was little changed at $1.2803 at 7:54 a.m. New York time, after rising to $1.2823, the highest level since Nov. 7. It was little changed at 104.35 yen. Japan’s currency fell 0.1 percent to 81.49 per dollar.
Norway’s krone traded at 5.7353 per dollar, after reaching 5.7278, the strongest level since Nov. 9.
Euro-area finance chiefs will try today to agree extra financing for Greece. Recycling European Central Bank profits on Greek bonds, charging Greece lower interest rates and extending repayment deadlines are among the options under consideration. The gap was created after EU lawmakers last week gave the nation an extra two years to reach its budget-deficit goals.
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
