Euro ticks higher vs dollar as Ireland hopes rise

11/19/10 15:42 EST NEW YORK -The dollar dipped against the euro Friday as officials from Ireland, the European Union and the International Monetary Fund negotiated a financial aid deal for the country.

Ireland appears likely to receive a loan to bolster its troubled banks, which would ease fears that Ireland's troubles would lead to a broader loss of confidence in European nations and raise borrowing costs for other weak economies like Portugal and Spain.

Uncertainty over whether creditors would suffer heavy losses on their Irish investments have weighed on the euro for two weeks, dragging it down from a nine-month high of $1.4281 reached on Nov. 4. The prospect of a rescue for Ireland has helped the European currency regain some ground in the past several days.

In late trading in New York, the euro edged up to $1.3672 from $1.3635.

The euro remains significantly higher than a 4-year low below $1.19 it touched in early June, when Greece's debt problems had driven down the euro. A euro110 billion rescue for Greece helped ease its short-term funding problems.

Worries about slower growth in the U.S. and the Federal Reserve's plan to support the economy through lower interest rates helped tug the euro higher throughout summer and early fall despite lingering concerns about debt in Portugal, Spain and Ireland.

Elsewhere, the dollar traded mixed. The British pound fell to $1.5973 from $1.6044, while the dollar was almost unchanged at 83.49 Japanese yen from 83.45 yen late Thursday

The U.S. currency fell to 1.0183 Canadian dollars from 1.0214 Canadian dollars, and dipped to 0.9952 Swiss francs from 0.9965 Swiss francs.

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Euro slides on 5-weeks deep, as Ireland G20 Summit trumps

NEW YORK - the euro slid to a five-week low against the dollar on Thursday as a growing uncertainty about Ireland?s ability to repay of its debt attempts when a group of 20 Summit overshadowed global tensions about currency and facilitate trade. Ireland problems have a back seat to fed to the top of the currency concerns, recently moved after taking politics for several weeks. Yields on 10-year Irish bonds issued rose above 8 percent to a record high of comparable German guilt, the euro-zone's standard. Investors are concerned Ireland would not be able, spending cut as planned and require a rescue package with bondholders to absorb losses. "The market has gone back, focusing on Europe rather than the United States where prices are currently very low," said Greg Anderson, G10 FX strategist at Citigroup in New York. "It has become a game of 'What currency you most like?' and right now, that is currency is the euro." The Fed Treasury purchase program announced bonds last week, is widely considered detrimental to the value of the dollar and a blessing for higher-yielding, considered riskier currencies. That trade, however, may have run its course and Europe debt problems have caused investors higher risk assets in avoiding in favour of the greenback. The euro fell as low as $1.3637 trading platform EBS, a five week trough, and was last down 0.9 percent to $1.3655. Also fell by 0.6 per cent against the yen and hit a seven week low against sterling. "While we think the euro looks vulnerable over the short-term, by the end of the year it will probably head higher," said Anderson. BNP Paribas, said the decline of the euro against the dollar be flat, in the vicinity of $1.3435-$ 1.3333 support over the next few weeks stalling. If key $1.3333 support contains pattern, $1.1875 is intact of the euro underlying longer-term rally off its low around June. As such, euro able would again rally and setting a new cycle $1.4280 later this year or in early 2011 high up, the Bank said in comment. Spike in Irish income and German decline as investors seek refuge in Confederation has come as U.S. returns later enabled partially by a string of strong U.S. economic data including October's employment report removed. Rise above 82 Yen considers the income of the dollar to make even more attractive and it this week for the first time since early October helped. It was 0.3 percent last 82.51 yen. The Fed said to reduce $600 billion of treasuries by mid-2011 to U.S. interest rates and slow growth, would buy boost, if a U.S. think tank report on Thursday could buy the less bonds Central Bank said, when the economy improves. Trading was lighter than usual, with some markets in the United States and Canada for holidays. The US bond market was closed in compliance with the Veterans Day holiday. Europe's woes diverted attention from a G20 Summit in South Korea. Discussion was expected that exchange rate policy and global economic imbalances, contain, although few investors expect a far-reaching agreement. Much of the disagreement to currencies focuses on the United States and China with the former eager to see who appreciate Chinese Yuan at a faster pace. Citigroup's Anderson said the G20 too large a group content agreement at the meeting in Seoul. "There are just too many different interests in play, so we don't expect any major developments to out of it", he said.

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Euro slides to 5-week low as Ireland G20 Summit trumps

NEW YORK-the euro slipped to a five-week low against the dollar on Thursday as growing uncertainty about Ireland s ability to pay his debts overshadowed attempts at a group of 20 Summit to alleviate global tensions about currency and trade policies. Ireland's issues have moved to the forefront of currency concerns recently after taking a backseat u.s. Federal Reserve policy for several weeks. Yields on 10-year-old Irish bonds increased well above the 8% to a record high of comparable German guilt, the euro zone by default. Investors are afraid of Ireland would not be able to cut expenditure as planned and you may need a bailout, with bond holders forced to lose. "The market has gone back to focusing on Europe instead of the USA, where rates are currently very low," said Greg Anderson, G10 FX strategist at Citigroup in New York. "It's a game of" what currency do you dislike the most? "and right now the euro zone." The Fed Treasury bond purchase programme, announced last week, is widely seen as detrimental to the value of the dollar and a blessing for higher-yielding, riskier currencies. That the trade, however, may have run its course and Europe's debt problems have caused investors to bypass higher risk assets in favor of the dollar. The euro as low as $ 1.3637 fell on trading platform EBS, a five weeks Valley, and was last down 0.9% at $ 1.3655. It also fell 0.6% against the yen and press a seven-week low against sterling. "Although we think the euro looks vulnerable about the short term, at the end of the year will probably head higher," Anderson said. BNP Paribas said that the decline of the euro vis-à-vis the dollar may be shallow, hang in the neighborhood of $ 1.3435-$ 1.3333 support during the coming weeks. As a central $ 1.3333 pattern contains support for the euro, will form the basis for longer-term rally from its low around $ 1.1875 June intact. As such, would be able to rally again the euro and the creation of a new cycle high above $ 1.4280 later this year or early 2011, the Bank said in comment. The peak in the Irish revenue and decrease of the German income as investors seek accommodation in Bund Futures has come as U.S. yields higher, have turned lifted partly by a series of strong u.s. economic data, including October employment report. Create company revenue dollar more attractive and helped the rise above 82 yen this week for the first time since early October. The last to 0.3 percent on 82.51 yen. The Fed said it would buy $ 600 billion of Treasuries by mid-2011 at the lower interest rates in the u.s. and stimulation of sluggish growth, although a U.S. think tank report on Thursday said that the Central Bank could less bonds buy if the economy improves. Trade was lighter than usual, with some markets in the United States and Canada closed for holiday. The American bond market was closed in accordance with the Veterans Day holiday. Europe's misery the attention of a G20 Summit in South Korea. Discussion it was expected that its exchange-rate policy and global economic imbalances, although a few investors expect a far-reaching agreement. Many of the disagreements about currencies focuses on the United States and China, with the former love to see the Chinese yuan appreciate at a faster pace. Citigroup's Anderson said that the G20 is too big a group achieved a substantive agreement at the meeting in Seoul. "There are just too many different interests in the game, so we do not expect that significant developments to come out of it," he said.

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