Euro rises to 4-month high on German ruling

AP News
Posted: Sep 12, 2012 5:51 PM
Euro rises to 4-month high on German ruling

NEW YORK (AP) — The euro rose to a four-month high against the dollar Wednesday after Germany's highest court paved the way for the country to participate in Europe's financial rescue fund.

The ruling helped ease investor uncertainty about Europe's efforts to solve its debt crisis. The $640 billion rescue fund will lend money to cash-strapped governments.

The euro rose to $1.2894 late Wednesday from $1.2860 late Tuesday. The euro rose as high as $1.2936 early Wednesday, its highest point against the dollar since May 11.

Traders are looking ahead to the end of the Federal Reserve's two-day policy meeting on Thursday. They are waiting to see whether the central bank will announce additional steps to help the U.S. economy.

Fed Chairman Ben Bernanke said in a speech last month that the bank can do more to help the U.S. economy rebound. It has already launched two rounds of bond purchases, most recently in August 2010.

The British pound rose to $1.6102 from $1.6092.

The dollar rose to 77.87 Japanese yen from 77.78 and to 97.64 Canadian cents from 97.33 Canadian cents.

The dollar fell to 0.9376 Swiss franc from 0.9389 Swiss franc.