Euro rises against dollar as Greece calls off vote

AP News
Posted: Nov 03, 2011 5:45 PM
Euro rises against dollar as Greece calls off vote

The euro rose against the dollar Thursday after Greece's prime minister abandoned his plan to put a financial rescue deal to a public vote.

The reversal helped allay concerns that Greece could delay or reject a European plan aimed at containing that region's debt crisis. European leaders agreed on the plan last week. A rejection could lead Greece to default on its debt, which would roil financial markets.

The euro rose to $1.3834 late Thursday from $1.3765 Wednesday. Earlier in the day, the euro fell as low as $1.3655 after the European Central Bank send it would cut its main interest rate 0.25 percent to 1.25 percent.

Kathy Lien, director of research at GFT, said that the euro was able to recover because Greece's decision to scrap the referendum "could put the country back on track to receiving its aid payment."

The euro had fallen about 2 percent against dollar since Monday, when Greek Prime Minister George Papandreou first announced the latest European deal would be put to a vote.

In other trading Thursday, the British pound rose to $1.6041 from $1.5967. The dollar fell to 0.8784 Swiss franc from 0.8832 Swiss franc and to 1.0079 Canadian dollar from 1.0143 Canadian dollar. Meanwhile, The dollar rose to 78.09 Japanese yen from 78.06 yen.