On Monday after Dubai’s announcement that it had received help from Abu Dhabi to repay its debts improved risk appetite and reduced some of the U.S. currency’s safe-haven appeal and as a result of this, the euro has shown a rise versus the dollar.
There has been a fall in dollar index, it has retreated from its highest in more than a month hit last week.
Abu Dhabi to bail-out Dubai with $10 billion Aid
The decision of Abu Dhabi to bail out its debt-laden neighbour with $10 billion in aid, has eased worries about a possible debt default by Dubai.
Bailout Announcement has supported Euro and Yen
It has been said by the analysts that the euro has been benefited from the bailout announcement, at the same time initial selling in the yen has also been triggered.
Gains might be capped
But moreover they have said that further gains may be capped as fiscal concerns in other countries has been underlined by Dubai’s debt issues, including Greece, whose credit rating was cut last week.
Major Currencies
By 1053 GMT, the euro EUR= had shown a rise of 0.2% to $1.4650, having jumped to around $1.4685.
Dollar Index Down
Euro/dollar gains has pushed the dollar index down 0.1% to 76.492, taking it down from a near six-week high of 76.726 hit late last week.
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