The euro rose against the US dollar as expectations Greece will soon receive emergency aid helped to quiet jitters about how Athens will pay its debts. Investors were comforted by news that a multi-billion-euro aid package aimed at avoiding a Greek default may be announced in coming days. There have been some encouraging signs in terms of size and speed of the aid package to Greece, which for now are enough to support the single currency.
Sterling fell against the US dollar and a broadly firmer euro on growing optimism a multi-billion euro aid package aimed at avoiding a Greek default may be announced in the coming days. Although the pound had been pressured over the upcoming government election, the possibility that next week's UK election may provide a majority government were tempered by wider fiscal concerns.
The Japanese yen firmed against the US dollar as US stock declines accelerated. The yen also gained against most major currencies on continued worries over a looming aid package for debt-stricken Greece.
The Canadian dollar was little changed against the US dollar after data showed Canada's economy grew an as-expected 0.3 percent in February. Statistics showed it was the sixth consecutive monthly domestic increase, pushed higher by stronger manufacturing and the Olympics. Canada's growth rate seems solid which should continue to support the Canadian currency.
The New Zealand and Australian dollars held near their highest levels of the week against the US dollar as optimism about a quick rescue package for debt-stricken Greece supported risk sentiment. The Aussie was also received support as Australian data showed a 0.5 percent rise in private credit in March, the biggest monthly gain in over a year, while home prices climbed to new highs. In addition, speculation the Reserve Bank of Australia (RBA) will lift its cash rate by 25 basis points to 4.5 percent at its May policy meeting next Tuesday should keep the Aussie firm.
10-Year Treasury Note Yield: 3.694%
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