Euro rises against dollar on ECB bond plan

AP News
Posted: Sep 06, 2012 4:43 PM
Euro rises against dollar on ECB bond plan

NEW YORK (AP) — The euro rose against the dollar Thursday in volatile trading as traders digested the European Central Bank's new plan to help ease Europe's debt crisis.

The central bank said it will buy unlimited amounts of government bonds from countries struggling to manage their debts.

Global stock markets rallied after the bank announced the plan. The Dow Jones industrial average closed at its highest level since December 2007.

The euro rose as high as $1.2651 before the announcement, its highest point against the dollar since July 2. The euro fell after the announcement, and then rose again. It was worth $1.2643 late Thursday, up from $1.2599 late Wednesday.

Investors have been waiting for a plan since July, when ECB President Mario Draghi said the bank will do whatever it takes to save the single currency.

In other trading Thursday, the British pound rose to $1.5936 from $1.5904.

The dollar fell to 0.9532 Swiss franc from 0.9556 Swiss franc and to 98.22 Canadian cents from 99.06 Canadian cents.

The dollar rose to 78.95 Japanese yen from 78.41 yen.