Dollar Strengthens as Fears of EU Debt Crisis Weren’t Eased

The US dollar rose the meeting of the European Union leader at summit in Brussels failed to alleviate the fears about the spreading of the debt-crisis across the Eurozone, increasing the demand for the safety of the US currency.

The EU officials ended their two-day meeting yesterday, agreeing that the mechanism to prevent the futures financial crises should be introduced by 2013. Beyond that, the meeting hasn’t provided any positive news. And that’s not nearly enough to remove the worries, which are just too strong and were present for too long to be easily erased by the hollow promises.

The German Chancellor Angela Merkel ruled out the possibility of the increasing of the bailout fund, considering that it’s unfair that the taxpayers in Germany, which is the biggest contributor to the bailouts, to pay for other’s “sins”. David Cameron, the Prime Minister of Great Britain, said that his country isn’t going to participate in the EU bailouts.

EUR/USD closed at 1.3184 after opening at 1.3242 and reaching the intraday high of 1.3357. GBP/USD closed at 1.5518 after it opened at 1.5631 and fell to the intraday low of 1.5453.

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