Euro Gains as ECB Reveals Plans to Support Greece

The euro rose today after it reached the highest level in a month against the US dollar as the European Central Bank plans to take actions to help Greece avoid default.

ECB President
Jean-Claude Trichet announced that the bank plans to take measures to encourage investors to buy new Greek bonds that would replace maturing securities. Trichet said that the bank doesn’t want to impose losses on creditors. Saying that, he added:

That doesn’t mean that we are against the fact that the private sector, as has been asked a year ago when there was a first program for Greece, financial institutions in Europe were asked to maintain their level of outstanding credit. That is not a default. That is something the European Central Bank would consider appropriate.

EUR/USD rose to 1.4603 from 1.4573 as of 4:36 GMT today after reaching yesterday 1.4657, the highest level since May 5. EUR/JPY went to 117.17 up from 116.74 after it climbed on the previous session to 117.69.

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