Euro erases gains vs dlr on EU plan, profit-taking
LONDON, March 20 (Reuters) - The euro erased gains against the dollar after hitting a session high above $1.37 on Friday, on concerns about weaker euro zone members and a possible plan to help them from going bust.
The euro was flat at $1.3670 after rising to $1.3727 , according to Reuters data. It had hit a high of $1.3737, the highest since early January, on Thursday.
Euro zone countries have agreed a rescue plan to prevent members of the currency bloc going bankrupt and will probably use it, with Ireland and Greece the top candidates for aid, a senior German lawmaker said.
"I guess it did (hit the euro) to an extent," said a trader in London. "I think it would possibly react more if markets knew which member, and how much."
Traders said the euro was also pressured by profit-taking after gaining some six percent this week.
The euro had risen sharply on the back of a broad dollar fall after the U.S. Federal Reserve said it would start buying long-dated U.S. Treasuries and other assets to bolster its ailing economy. '
"It's the end of the week and because there's been a big move higher, people who bought ahead of the FOMC or on the way up, they are going to take a bit of profit," said Adarsh Sinha, a currency strategist at Barclays Capital. (Reporting by London forex desk) ((tamawa.desai@thomsonreuters.com; Tel: +44207 542 8510, Reuters Messaging: tamawa.desai.reuters.com@reuters.net))
Keywords: MARKETS FOREX/ |
