Forex Top Story
2/9/2010 12:27 PM ET
(RTTNews) -
The euro fought back against the dollar on Tuesday, improving from lows not seen since last spring after reports surfaced indicating that European leaders have agreed in principle on a package to bail out debt-ridden Greece.
Greece has been taking steps to cut Europe's largest deficit, which is 12.7 times higher than the value of its total economic output last year.
European Central Bank President Jean-Claude Trichet cut short a visit to Australia today, fueling speculation he is returning to Europe to work out a plan for Greece at a European Union summit in Brussels on Thursday.
The news soothed concerns that Greek problems could present a threat of contagion spreading to Portugal and Spain, other EU members beset by sovereign debt problems.
European debt has weighed heavily on the euro of late, particularly against the dollar and yen, which are widely considered safe haven currencies.
However, with a bailout thought to be in the works, the euro managed to claw back a significant portion of its recent losses.
The euro rose to 1.3825 versus the dollar in mid-day dealing, extending its recovery from Friday's 8-month low of 1.3595.
Against the yen, the euro jumped to 124.06, away from a recent 11-month low near 121.20.
The euro held its ground versus the sterling, staying near a 3-week high above 0.8800.
The news on Greece overshadowed data showing German exports rose on an annual basis for the first time in fourteen months in December.
Germany as the largest exporter was overtaken by China in 2009, Destatis said. Citing information from the Chinese Ministry of Commerce, Destatis said Chinese exports amounted to $1,201.7 billion, while German exports totaled $1,121.3 billion in 2009.
by RTT Staff Writer
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