The EUR at 2 Week High as Greece Debt Concern Ease

 @ibtimes
on March 04 2010 6:57 AM

The EUR was firmer on Thursday, as investors encouraged by Greece's fresh austerity measures to reduce its deficit cut some of the record short positions in the single currency. Greece announced plans for a further $6.5 billion in pay cuts and tax hikes to reduce its deficit, easing worries about the country's debt crisis.

The European currency traded near a 2 week high against the U.S dollar on easing concerns the European Union's biggest budget gap will derail a regional recovery after Greece announced tax increases and deeper spending cuts. The EUR traded at $1.3703 from $1.3697 yesterday when it reached $1.3736, the strongest since Feb. 17.

However, gains in the EUR were tempered on speculation the European Central Bank will maintain credit easing measures at a policy meeting today. Economists expect the ECB to keep the benchmark rate at 1% as in previous months.

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