The euro strengthened today against other most traded currencies on the hopes that European Union’s governments will take measures to ensure that the common European currency retain its strength.
The Germany’s ban of the short selling, which curbed the currency’s strength earlier, wasn’t supported by other European countries, even though Angela Merkel, the Chancellor of Germany, tried to persuade other European leaders that such measures are necessary to preserve the region’s economy. Germany’s reaction to the debt crisis was considered too hasty and unreasoned by some economists.
Anyway, some sort of agreement of the EU nations on the actions to deal with the region’s fiscal crisis is required to calm the worries about the ability of the EU nation’s to resolve the present issues. So even if such strict measures as Germany’s ban will be implemented by all countries of the region, it wouldn’t be bad for the euro as such action would signal about better regulations in the European Union. On the other hand, there is opinion, voiced by the Prime Minister of Italy Silvio Berlusconi and some economists, that the depreciation of the euro is good for the EU economy as it helps the European exports.
EUR/USD traded at about 1.2356 today as of 17:45 GMT after it opened at 1.2200. EUR/GBP traded near 0.8590, climbing from the opening price of 0.8511. EUR/JPY rose to 113.10 from the opening rate of 112.54.
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