By TraderVox.com
Tradervox.com (Dublin) – The 17-nation currency strengthened against the Japanese currency as European governments pushed Greece to make deeper spending cuts. Eurozone leaders want Greece to adhere to these spending cuts in order to keep aid flowing and as they discuss measures to resolve the region’s debt crisis that has lasted for the last three years. The euro dropped against the dollar earlier as traders avoided riskier assets due to Hurricane Sandy. However, the euro strengthened against most of its major counterparts as Portuguese lawmakers prepare to vote on 2013 budget proposal.
Brain Kim has noted that the risk-off mood in the market is partly due to the discussions going on about Greece. Kim, who is a currency strategist at Royal bank of Scotland Group Plc, in Stamford Connecticut, added that the support from Euro zone leaders discussing Greece bailout was expected as there is general consensus that everything should be done to keep Greece in the monetary union. The euro rose against the yen as Standard & Poor’s 500 Index remained high, increasing by 0.5 percent.
According to Sireen Harajli, who is a foreign currency strategist at Credit Agricole in New York, EU leaders discussing the Greece issue are showing flexibility but without giving up the ultimate goal of positive development in the country and the region as a whole. The euro has dropped against the dollar as the region tries to resolve debt crisis issues. On November 27, Portuguese Parliament will hold a final budget vote while the Greek government is presenting the budget to the parliament today.
The 17-nation currency strengthened against the Japanese currency by 0.2 percent to close the day at 103.38. It had gained to 104.59 on October 23, the strongest it has been since May 4. The euro remained unchanged against the dollar at $1.2960 after it appreciated by 0.5 percent.
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