Euro gains against dollar as Greece names new PM

AP News
Posted: Nov 10, 2011 3:31 PM
Euro gains against dollar as Greece names new PM

The euro rose against the dollar Thursday after Greece named a new prime minister, raising hopes that the country will accept Europe's latest debt deal and avoid bankruptcy.

The appointment of Lucas Papademos as Greece's new prime minister came after four days of tense talks between Greek politicians. Worries that Greece would be unable to agree on a new leader sent the euro to a four-week low against the dollar Wednesday.

The euro rose to $1.3581 in late Thursday from $1.3540 Wednesday.

Papademos will replace outgoing Greek Prime Minister George Papandreou, who resigned after announcing last week that he would put Europe's latest debt deal to a public vote. The announcement shocked European leaders, and Papandreou later reversed his decision on the vote.

Also helping boost the euro Thursday was speculation that the leading economist Mario Monti may replace Italian Prime Minister Silvio Berlusconi. That talk helped push Italy's key borrowing rate below 7 percent Thursday, a day after it spiked above that critical level. Italy, Greece, Portugal and Ireland were forced to get financial lifelines after their rates rose above 7 percent.

In other trading Thursday, the British pound rose to $1.5905 from $1.5917 late Wednesday. The dollar fell to 77.66 Japanese yen from 77.85 Japanese yen, to 0.9076 Swiss franc from 0.9097 Swiss franc and to 1.0195 Canadian dollar from 1.0228 Canadian dollar.