Monday, 21 November 2011

Euro Jumps On News Of Greek Aid Tranche Decision

NEW YORK (Dow Jones)--The euro jumped back above $1.35 in late Monday morning trading, nearly reversing all of the session's losses after a Greek official said euro zone officials would decide on a key tranche of the country's aid next week.

Greek Finance Minister Evangelos Venizelos said that euro-zone finance officials would decide by Nov. 29 whether the country would receive a sixth installment of its bailout assistance. Venizelos added that the parliament would vote on the new EUR130 billion aid deal in January.

Little has fundamentally changed about Greece's ailing finances. However, investors appeared encouraged by the fixed date, which heralds some resolution for a market that remains wracked by uncertainty. After falling as low as $1.3430, the euro leapt above $1.3510, marginally lower on the day. The single currency also pared losses against the yen to trade around Y103.97, fractionally higher from Friday's close.

Continued financial assistance to Greece--which many analysts say is teetering on the precipice of a debt default--has been thrown into doubt recently despite the appointment of a recent caretaker government. Political infighting is raising questions about the debt-saddled country's willingness to implement a raft of austerity measures demanded as part of Greece's international bailout.

-By Javier E. David, Dow Jones Newswires; 212-416-4564;