| CATEGORY: FX |
Tue 22 May 2012
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LONDON (SHARECAST) - The euro gained ground against the dollar on Monday as traders paused from the recent sell-off, which knocked the common currency to a four-month low.
The euro recovered ahead of an informal meeting between EU leaders on Wednesday following weekend talks at the G-8 meeting.
In a joint statement G-8 leaders underlined their committment to a robust Eurozone. "We agree on the importance of a strong and cohesive Eurozone for global stability and recovery, and we affirm our interest in Greece remaining in the euro zone while respecting its commitments."
At Wednesday's informal EU summit, French President Francois Hollande is expected to promote the idea of euro-area bonds, something that Germany
is against.
Focus also remained on Greece and concern that it may exit the Eurozone. Weekend polls however indicated that the nation's Conservatives had gained ground, increasing hopes that Greece could vote in a government in favour of meeting the terms needed for its next bailout from the EU/IMF.
The dollar index, which measures the US currency against a basket of six others, snapped a two-week winning streak to trade at 80.970 compared to 81.163 in US trading late Friday.
Against the Japanese yen, the dollar fetched ¥79.30 versus ¥79.03 on Friday while the euro climbed 0.6% to ¥101.62 yen. The single currency was up 0.1% at 80.91p. Sterling was little changed against the dollar at $1.5829.
CJ
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