Euro rises ahead of eurozone finance ministers' meeting

April 24, 2015 | 09:17

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The euro firmed against the dollar on Thursday on the eve of a eurozone finance ministers meeting as Greece seeks to strike a deal with creditors to avert a bailout default.

US dollar and euro notes (AFP/Philippe Huguen)

NEW YORK: The euro firmed against the dollar on Thursday (Apr 23) on the eve of a eurozone finance ministers meeting as Greece seeks to strike a deal with creditors to avert a bailout default.

With Greek government coffers rapidly emptying, analysts warn Athens may have only weeks left before defaulting and possibly exiting the euro unless it reaches a deal with the European Union and the International Monetary Fund to unlock €7.2 billion (US$7.8 billion) in remaining bailout loans. The euro fetched US$1.0823, up from US$1.0725 late Wednesday.

The Eurogroup finance ministers meeting will discuss the Greece issue in Latvia's capital Riga on Friday.

"While it may appear that they are slightly more optimistic about the potential for a deal that could unlock the next allotment of bailout funds for Greece, in reality the rebound in EUR/USD reflects short covering ahead of the meeting," said Kathy Lien of BK Asset Management.

Joe Manimbo of Western Union Business Solutions said that many investors "appear to be betting on Greece to weather its current cash crisis and avert default and an exit from the euro." "The situation remains fluid and uncertain, so if Greek bailout talks should take a dramatic turn for the worse, the euro's resilience would leave it prey to a steeper fall," he said.

Meanwhile, the dollar weakened on a rise in US jobless claims and a big drop in new-home sales, Lien said.

AFP

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