Euro rises against dollar on European debt hopes

AP News
Posted: Nov 28, 2011 3:32 PM
Euro rises against dollar on European debt hopes

The euro rose against the dollar on hopes that a new plan to stop Europe's debt crisis from spreading is in the works.

There were reports Monday that the International Money Fund is putting together a rescue package for Italy. Investors are hoping that European leaders will finally agree on a solution to contain the region's debt crisis.

The euro rose to $1.3306 in late trading from $1.3230 late Friday. The euro fell to a 7 1/2-week low against the dollar Friday after Italian borrowing rates soared, a sign that investors were worried the country may not be able to pay its debts.

In the U.S., the National Retail Federation said Sunday that 226 million shoppers visited stores and websites during the Thanksgiving holiday weekend, up from 212 million last year. They also spent more.

Traders felt more comfortable buying the euro and other high-yielding risky currencies since they view the increase in spending as a sign that the U.S. might avoid another recession.

In other trading, the British pound rose to $1.5496 from $1.5433. The dollar fell to 0.9234 Swiss franc from 0.9318 and to 1.0366 Canadian dollar from 1.0503 Canadian dollar.

The dollar rose to 77.99 Japanese yen from 77.76 Japanese yen.