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Euro hits 3-week high against US dollar

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NEW YORK, Nov 23 AFP

November 24 2012, 10:05AM

The euro has hit a three-week high against the US dollar, boosted by an encouraging German rebound in business confidence and rising hopes for a crucial aid payment to debt-wracked Greece.

The euro bought $1.2973 at 2200 GMT on Friday (0900 AEDT) compared with $1.2884 at the same time on Thursday.

It climbed to Y106.90 from Y106.25 late on Thursday, while the dollar edged down against the Japanese currency to Y82.40 from Y82.47.

"The US dollar is lower on balance and the euro is higher, with investor sentiment supported by better-than-expected data and with a lack of progress by European policymakers doing little to unsettle markets for now," said Nick Bennenbroek at Wells Fargo.

European officials voiced confidence that a deal on Greece aid will be reached on Monday, at the next emergency meeting of the Eurogroup of finance ministers from the 17 states that use the single currency.

"Events in Europe are likely to be the focus of the week as the Eurogroup meeting is expected to see negotiations on the Greek financing gap progress further," said Geoffrey Kendrick at Nomura Foreign Exchange.

The greenback also was lower against the British pound, which fetched $1.6033, up from $1.5937 a day earlier.