Euro rises to 2-month high against dollar

AP News
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Posted: Feb 07, 2012 3:36 PM
Euro rises to 2-month high against dollar

The euro rose to a 2-month high against the dollar Tuesday on speculation that Greek politicians will agree on a new cost-cutting plan.

Greece needs to agree on new austerity measures in order to receive more bailout cash. Without the money, Greece could default on its debt next month. A default could hurt European banks and disrupt financial markets.

Greek politicians met late Tuesday evening to finalize a proposal for new austerity measures. Prime Minister Lucas Papademos is expected to meet with Greek politicians on Wednesday.

The euro rose to $1.3248 in late trading Tuesday from $1.3125 late Monday. The euro rose as high as $1.3269 Tuesday, its highest point since Dec. 12, 2011.

The dollar also fell against most other currencies. The British pound rose to $1.5893 from $1.5827. The dollar fell to 0.9125 Swiss franc from 0.9190 Swiss franc and to 99.58 Canadian cents from 99.65 Canadian cents.

But the dollar rose to 76.78 Japanese yen from 76.59 yen.