27 Jun '11, 11pm

Euro rebounds amid Greek debt talks

WASHINGTON: Hopeful news on Greek debt talks spurred the euro upward Monday, after mounting worries of a default last week sent the European currency plunging against the dollar. Around 2100 GMT the euro was at $1.4277, up from $1.4190 late Friday. While Greek Prime Minister George Papandreou begged the parliament Monday to pass drastic austerity measures and keep the country "on its feet," traders were reassured by earlier comments from French President Nicolas Sarkozy that France is working with private lenders on a new, long-term rescue plan, as well as news that Italian banks had begun talks on restructuring the Greek debt they hold. Traders got a further boost when a senior European Union official said Brussels is working on a "Plan B" in case the Greek parliament fails to approve the austerity measures. The official stressed that Greece cannot just be allowed to decl...

Full article: http://www.channelnewsasia.com/stories/afp_world_business...

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