Euro rises on speculation Europe plan in works

AP News
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Posted: Jun 04, 2012 3:48 PM
Euro rises on speculation Europe plan in works

The euro rose against the dollar Monday on speculation that European leaders will work out a plan to help ease the region's debt crisis.

The euro rose to $1.2494 from $1.2416 late Friday.

Media reports that European leaders are working on a debt crisis fix boosted the euro, but there was no official announcement Monday.

The euro fell nearly 6 percent against the dollar in May as fears about Spain economy intensified and Greece was rocked by political turmoil.

Voters in Greek elections this month might choose leaders who oppose the terms of the country's bailout loans, which include deep cuts in government spending. That could force the country to leave the single currency union, which would be likely to disrupt global financial markets.

The dollar was mixed against other currencies. It rose to 78.34 Japanese yen from 78.11 yen and to 1.0396 Canadian dollar from 1.0395 Canadian dollar.

The British pound rose to $1.5385 from $1.5375. The British stock market is closed Monday for a public holiday.

The dollar fell to 0.9613 Swiss franc from 0.9673 Swiss franc.