By TraderVox.com
Tradervox (Dublin) – The euro registered its first quarterly gain against the yen since the first quarter of 2011. The euro strengthened after the endorsement of the second bailout financial package for Greece was approved and as the Investors concerns were calmed by the European Central Banks loans to financial institutions in the region. In the approval of this bailout package for Greece, the Region’s finance ministers approved 130 billion Euros as aid to Greece, and the ECB provided financial institutions in the region with 529.5 billion Euros of three-year loans in its efforts to avert a possible credit crunch.
The latest stimulus to the euro came after the March 30 meeting of Finance Ministers in Copenhagen. This meeting aimed at creating a bigger firewall to boost the regions ability to fight credit crisis which is bound to spread into other countries like Italy and Spain. The European finance minister agreed to expand the firewall kitty which increased confidence among investors leading to the increase of the euro against major world currencies.
On the other hand, the dollar and the yen were falling against major currencies as appetite for safe haven currencies dampened on the news of agreement. A Currency Strategist at Wells Fargo & Co in New York indicated that the rise of the euro was due to the increase in the firewall kitty, adding that the euro might move higher this week.
On Friday, the euro increased by 0.3 percent to exchange at $1.3343 in New York securing a quarterly gain of 3 percent. The 17 nation currency rose 0.8 percent against the yen to sell at 110.56 yen. This secured a quarterly gain of 11 percent against the yen which is the most it had climbed against the yen since the closing three month of 2000. The yen fell against the dollar by 0.5 percent exchanging at 82.87. The Japan currency had earlier on Friday increased against the dollar to 81.83 yen.
Analysts are claiming that the euro might hold its gains against the dollar at between $1.3275 and 1.34. This is supported by the recent agreement to boost the firewall power. Europe is now waiting the pledges that have been made so far and the one trillion-euro boost expected to be done by the ECB.
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