Euro resumes upward march after early losses

AP News
Posted: Oct 13, 2011 4:07 PM
Euro resumes upward march after early losses

The euro rose against other currencies Thursday, reversing earlier losses and resuming a week-long rally.

The euro rose to $1.3783 at 3:04 p.m. Eastern time from $1.3690 earlier Thursday. It remained slightly weaker than late Wednesday, when a euro bought $1.3793.

The euro has been rising since last week, when it fell to a nine-month low against the dollar. It reached $1.3833 early Wednesday afternoon, the highest in nearly four weeks. It declined early Thursday, but reversed directions at midday.

The euro is strengthening because Europe's leaders appear to be closer to solving the regions' debt crisis. An expanded European bailout fund has been endorsed by every nation that uses the euro. Slovakia became the final nation to approve it on Thursday.

Traders are canceling out recent bets against the currency, which would cost them dearly if the euro strengthened. They are buying euros to close out those trades.

The euro also rose against the Swiss franc, Japanese yen and British pound.

The yen rose against the dollar. The dollar fell to 76.88 yen from 77.30 late Wednesday.

The dollar rose to 1.0190 Canadian dollar from 1.0151 Canadian dollar late Wednesday.