Euro jumps to 7-week high against dollar

AP News
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Posted: Aug 21, 2012 12:45 PM

NEW YORK (AP) — Hopes that the European Central Bank will reach a deal to help its troubled countries are pushing the euro to a seven-week high against the dollar.

The euro rose to $1.2470 in afternoon trading from $1.2348 late Monday. The euro rose as high as $1.2487 Tuesday, its highest point against the dollar since July 5.

Traders are optimistic that the ECB will buy some government bonds from eurozone countries to help reduce their borrowing costs.

The British pound rose to $1.5783 from $1.5709. The dollar fell to 0.9628 Swiss franc from 0.9728 Swiss franc.

The dollar was flat at 79.43 Japanese yen.