Euro up vs dollar a day after central banks act

AP News
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Posted: Dec 01, 2011 4:03 PM
Euro up vs dollar a day after central banks act

The euro rose against the dollar Thursday, a day after major central banks around the world took action to ease strains on global markets.

Also helping boost the euro were successful bond auctions in Spain and France. The positive bond auctions helped lowered borrowing rates in Germany, France, Italy and Spain, said Kathy Lien, research director at GFT.

A drop in borrowing rates is a sign of rising investor optimism that European leaders will find a solution to the region's debt crisis.

Rising borrowing rates in those countries have been a major concern for investors recently. The euro fell nearly 3 percent against the dollar in November as borrowing rates in those countries rose.

On Wednesday, the U.S. Federal Reserve, European Central Bank, Bank of England and the central banks of Canada, Japan and Switzerland made said they working together to make it easier for banks to borrow dollars. The coordinated effort is meant to spur economic activity and ease pressures on financial markets as Europe's debt crisis continues to worry investors.

The euro rose to $1.3460 in late trading Thursday from 1.3435 late Wednesday.

The British pound slipped to $1.5689 from $1.5701. The dollar rose to 77.76 Japanese yen from 77.56 yen and to 0.9164 Swiss franc from 0.9129 Swiss franc.

The dollar fell to 1.0150 Canadian dollar from 1.0199 Canadian dollar.