The euro pushed higher against the dollar on the final day of 2010, as German Chancellor Angela Merkel urged the preservation of the single currency in her New Year's address.
Germany, the backbone of the European Union, has been compelled to facilitate rescue packages for profligate neighbors like Ireland and Greece, much to the dismay of its citizens.
While some in Germany have called for debt-ridden neighbors to go their own way, Merkel insists that the euro remains "the basis for Germany's prosperity."
"We have to strengthen the euro," she said. "Germany needs Europe and our common currency."
The euro has struggled for much of 2010 amid concerns about the long-term viability of a monetary union between nations with such disparate finances and growth prospects.
While Greece and Ireland were throw a lifeline, bond vigilantes are primed to go after Spain and Portugal. A rescue for the Iberians would be vastly more expensive, and some worry that austerity conditions attached to a loan will hamper economic growth for years.
Estonia will become the latest addition to the euro zone when the clock strikes midnight in the Baltic region.
In thin trade the euro pushed ahead to a 3-week high of $1.3389 against the dollar. The pair moved in a range between $1.1800 and $1.4600 in 2010.
There was no economic news from the US this morning, but traders continued to assess yesterday's encouraging jobless claims figures.
First-time claims for unemployment benefits in the US dropped below 400,000 for the first time in two years, suggesting the nation's jobs situation may be on the mend.
The euro was on pause near CHF 1.25 against the Swiss franc Friday. A dramatic downtrend took the euro to a record low of CHF 1.24 in the previous session.
Meanwhile, the euro was steady near Y109 versus Japan's yen, having dropped to a 3-month low of Y107.59 earlier this week. Back in August, the euro hit a 9-year low of Y105.41
European stocks picked up almost 9 percent in 2010, but finished the year on a downbeat note in Friday's abbreviated session.
For comments and feedback contact: editorial@rttnews.com
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.