The Euro climbed to a six-week high against the U.S. Dollar after Greece announced it would buy back government securities while spending 10 billion Euros doing so. This set currency investors at ease and suggested the debt crisis in the Euro-zone isn’t worsening. According to official sources, Greece invited debt holders to submit their securities in a “Dutch-type auction.” The shared currency extended gains as it was reported that Greek bonds led among the lower-rated countries, including Italy and Spain. And it rallied further against the remainder of its foreign currency peers after U.S. Treasury Secretary, Timothy Geithner, and House Speaker, John Boehner, proceeded to blame each other for the impasse which may lead to more than $600 billion in tax hikes and cuts in spending.
In other Forex online news, the Australian Dollar declined to the lowest level in one week on speculation the Reserve Bank will cut the costs of borrowing money when it meets today. Furthermore, the country’s Statistics Bureau indicated that Retail Sales remained unchanged in the month of October, after having increased during the prior two months.
The British Pound traded at the weakest in over four weeks against the Euro on speculation that regional policymakers are doing what’s needed in order to stem the debt crisis, thereby dampening the appeal of risk assets. The Sterling advanced versus the greenback following a release confirming that U.S. Manufacturing contracted last month for the first time in three months.