Tuesday, June 21, 2011

Greek vote optimism supports euro

Financial Times
June 21, 2011

The euro advanced on Tuesday as traders awaited a crucial vote in the Greek parliament that could pave the way for a fresh rescue package for debt-stricken Athens.

By midday in New York, the single currency rose 0.4 per cent to $1.4378 against the dollar, added 0.3 per cent to £0.8860 against the pound and was 0.3 per cent stronger at Y115.11 against the yen.

Traders were cautiously optimistic that George Papandreou, Greek prime minister, would survive a confidence vote late on Tuesday.

That would enable his government to push austerity measures to tackle the country’s debt problems through parliament, a pre-requisite for Athens to receive the next €12bn tranche of aid from the International Monetary Fund and its eurozone partners.

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