Bloomberg News

Euro Touches One-Week High as Greek Leader Wins Confidence Vote

June 21, 2011

June 22 (Bloomberg) --The euro touched a one-week high against the dollar as Greek Prime Minister George Papandreou won a confidence vote in parliament, taking the Mediterranean nation one step closer to avoiding default on its debt.

The confidence ballot cleared the way for a separate vote on a 78 billion-euro ($112 billion) package of budget cuts and asset sales to ensure the payment of 12 billion euros due in July under last year’s 110 billion-euro bailout from the European Union and the International Monetary Fund. It also was needed for consideration of a second rescue plan.

“The euro will trade higher,” Jessica Hoversen, a New York-based analyst at the futures broker MF Global Holdings Ltd., said before the vote. Greek lawmakers “recognize that the market needs to believe that Greece is going to get that $12 billion tranche and a vote for the government is a vote for the package.”

The euro reached $1.4434, the most since June 15, before trading at $1.4392 at 7:26 a.m. in Tokyo. The euro was at 115.46 yen from 115.60.

--Editors: Greg Storey, Nate Hosoda

To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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