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Friday, May 27, 2011

euro rose against the dollar on Friday may 27 2011

euro rose against the dollar on Friday may 27 2011 ; The euro rose against the dollar on Friday as weak US economic indicators offset growing concerns over a possible Greek debt default, dealers said.

The euro climbed to $1.4216 in morning trading from $1.4141 late in New York on Thursday. Against the Japanese currency, the dollar fell to 81.05 yen from 81.29 yen on Thursday.

The dollar began falling on Thursday after a report showed US jobless claims rose after two weeks of declines.

Washington also left unrevised its estimate of first-quarter economic growth at a tepid 1.8 percent. Most analysts had expected a rise to 2.0 percent.

“Yesterday's disappointing US Q1 GDP revision has reinforced the view that US growth remains lacklustre and that the Fed is unlikely to be able to hike interest rates for a prolonged period,” said Rabobank senior currency strategist Jane Foley.

In Europe, Greece was in the throes of emergency talks on tough new economic reforms under the gun of a new IMF debt warning and a looming risk of bankruptcy.

Prime Minister George Papandreou was heading into Friday's critical talks with political parties, called by Greek President Carolos Papoulias as the IMF seems likely to withhold a vital instalment of rescue money.

Luxembourg Prime Minister Jean-Claude Juncker, who heads the eurozone finance ministers, warned on Thursday that the IMF may block a 12-billion-euro aid payment to Greece, the next instalment in its bailout.

Juncker said the fifth tranche in a 110-billion-euro loan package could be hampered by IMF rules forbidding the lender of last resort to release funds without a 12-month guarantee of solvency.

“Juncker put the cat among the pigeons... by warning that the IMF may not pay out the next tranche of aid for Greece,” said analyst Foley.

“Juncker appears to be displaying further unease at the pace of progress in Greece and suggesting that there is risk that Greece could be forced to default potentially sooner rather than later,” she added.

In London on Friday, the euro changed hands at $1.4216 against $1.4141 late in New York on Thursday, at 115.14 yen (114.96), £0.8660 (0.8625) and 1.2203 Swiss francs (1.2243).

The dollar stood at 81.05 yen (81.29) and 0.8588 Swiss francs (0.8655).

The pound was at $1.6405 (1.6393).

On the London Bullion Market, gold prices rose to $1,525.57 an ounce from $1,519 late on Thursday For the latest updates PRESS CTR + D or visit Stock Market news Today

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