Euro Rises as China Talks About Helping Europe

The euro advanced today as China signaled that it may help the European Union in battling the debt crisis and Germany’s economy shrank less than was forecast.

Zhou Xiaochuan, People’s Bank of China Governor, said that China, as well as other emerging economies, may help Europe in resolving its problems. Zhou mentioned three possible sources of help: the central bank, China Investment Corp., the nation’s sovereign wealth fund, and banks, including the China Development Bank, the Export-Import Bank of China and others. Germany’s gross domestic product fell 0.2 percent in the fourth quarter of 2011, while it was predicted to decline 0.3 percent.

EUR/USD rose from 1.3131 to 1.3170 and EUR/JPY went up from 102.98 to 103.39 as of 10:32 GMT today.

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