Euro rises vs dollar ahead of Greek bond swap

AP News
Posted: Mar 07, 2012 3:29 PM
Euro rises vs dollar ahead of Greek bond swap

The euro turned higher against the dollar as more investors agreed to participate in Greece's debt restructuring deal.

Greece needs to complete the bond swap to get its second package of bailout funds and avoid default. Investors who agree to participate will have to trade their Greek government bonds for new ones with lower value and lower returns.

Private investors who own nearly half of Greece's debt have already committed to the swap. The country needs 90 percent of investors to sign up. The deadline to do so is Thursday.

Traders are still cautious that not enough bondholders will participate, which is keeping the euro from rising higher against the dollar.

The euro rose to $1.3150 in late trading Wednesday from $1.3110 Tuesday.

In other trading, the British pound rose to $1.5739 from $1.5711. The dollar fell to 0.9166 Swiss franc from 0.9190 Swiss franc and to 99.87 Canadian cents from 1.0021 Canadian dollar.

The dollar rose to 81.19 Japanese yen from 80.78 yen.