Euro rises against dollar

The euro climbed against the dollar on Friday as risk-taking returned amid easing concerns over huge debts weighing down on Greece.

LONDON, December 11, 2009 (AFP) - The euro climbed against the dollar on Friday as risk-taking returned amid easing concerns over huge debts weighing down on eurozone member Greece, traders said.

In London deals, the euro -- seen as a riskier investment compared with the greenback -- rose to 1.4754 dollars from 1.4732 late in New York on Thursday.

Against the Japanese currency, the dollar climbed to 88.94 yen from 88.25 yen on Thursday.

Greek markets rallied behind beleaguered Prime Minister George Papandreou on Friday as he prepared to draft a crisis programme within seven weeks to save the economy and stitch up a rift in the eurozone.

Trying to beat down a debt of 300 billion euros (450 billion dollars) that has alarmed markets, drawn strong criticism from the European Union and worried his own people, Papandreou is expected to make a statement Monday on fresh emergency measures.

The dollar had meanwhile risen against the euro in earlier Asian trading in the wake of positive US trade data and signs that central banks are becoming more confident about the economic outlook, dealers said.

The greenback was stronger after government data showed that the US trade deficit narrowed unexpectedly in October, with a jump in exports offsetting a smaller rise in imports.

A separate report showed new US claims for unemployment benefits rose in the past week, although holding below the level of 500,000.

"US economic news was generally good," noted NAB Capital strategist John Kyriakopoulos.

Investors were also digesting the Bank of England's decision on Thursday not to pump more new money into the economy, as it left its key lending rate on hold at 0.5 percent.

"Central banks around the world seem to be turning a little bit more confident about the sustainability of a (world) recovery," said Calyon analyst Sebastien Barbe.

But that does "not imply a drastic tightening of monetary conditions in the very short term, as central banks seem keen on protecting the recovery," he cautioned.

In London on Friday, the euro was changing hands at 1.4754 dollars against 1.4732 dollars late on Thursday, at 131.22 yen (130.01), 0.9039 pounds (0.9049) and 1.5125 Swiss francs (1.5110).

The dollar stood at 88.94 yen (88.25) and 1.0252 Swiss francs (1.0256).

The pound was at 1.6320 dollars (1.6276).

On the London Bullion Market, the price of gold advanced to 1,138.32 dollars an ounce from 1,128.50 dollars late on Thursday.