Euro at Three-Week High on Optimism for Banks’ Recapitalization

The euro jumped to the highest level in three weeks today as Forex market participants anticipate the improvement of the European financial system after the recapitalization of the region’s banks.

European Commission President Jose Barroso is planning to present proposals on recapitalizing banks. He said yesterday he hopes the proposals would be an “important contribution for the European Council and the euro-area summit on Oct. 23″. Greek Finance Minister Evangelos Venizelos reassured his country will meet the conditions set by the international creditors. The Stoxx Europe 600 Index rose 0.3 percent.

EUR/USD climbed from 1.3638 to 1.3773 as of 10:35 GMT today, while the intraday maximum was 1.3815 — the highest level since September 16. EUR/JPY rose from 104.54 to 105.62.

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