Euro rises vs dollar on European debt plan hope

AP News
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Posted: Nov 29, 2011 5:00 PM
Euro rises vs dollar on European debt plan hope

The euro rose against the dollar for the second day in a row on hopes that European leaders will come up with a solution to deal with the region's growing debt crisis.

Finance ministers from the 17 countries that use the euro met in Brussels Tuesday to discuss ideas. The finance ministers are considering a number of plans for protecting the region's shared currency from collapse. One idea being floated is having countries relinquish some control over their finances to a central European authority.

Early in the meeting they approved the next $10.7 billion installment of Greece's bailout loan. Without that money, the country would have run out of cash next month. European Union finance ministers are also expected to meet on Wednesday.

Pressure to come up with a solution has escalated in the past couple of weeks as borrowing costs have risen in Italy, Spain and even Europe's biggest economy Germany. Rising borrowing costs are a sign that investors think the country may not be able to pay its debts.

The euro rose to $1.3331 late Tuesday from 1.3306 late Monday. The euro has fallen nearly 4 percent so far this month on fears that Europe's debt crisis would spread to other countries.

In other trading, the British pound rose to $1.5607 from $1.5496. The dollar fell to 77.93 Japanese yen from 77.99 Japanese yen, to 0.9203 Swiss franc from 0.9234 Swiss franc and to 1.0301 Canadian dollar from 1.0366 Canadian dollar.