Euro jumps on Greek package, Aussie at 5-mth high

SYDNEY (BestGrowthStock) – The euro jumped to its highest in nearly a month in early Asian trade on Monday, after European Union leaders agreed to a rescue package for Greece which traders said could drive investors to cover short positions.

The euro was up at $1.3616, from $1.3488 in New York on Friday, having tested the 55-day moving average at around $1.3637. The move confirmed an interim bottom on the euro, leaving it open for a test of $1.3817–the March 17 high– this week.

EU leaders agreed a 30 billion euros aid package of loans for Greece if needed, plus at least 10 billion euros from the IMF. The interest rate of 5 percent is considered a little steep for debt-strapped Greece but better then the 7-plus yields it was currently paying for three-year debt.

The rise in the euro, underpinned broad risk appetite and pushed up commodity-linked currencies like the Australian and New Zealand dollars. The Aussie was trading at a 5-month high of $0.9365, while the kiwi was up at $0.7180.

The dollar index (Read more about the global trade. ) (.DXY: ) was down 0.85 percent at 80.41, while the U.S. dollar was steady at 93.20 yen.

Euro/yen jumped to 126.88 yen from 125.69 yen while the Aussie/yen was up at 87.25 yen from around 86.88 yen late on Friday in New York.

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(Editing by Wayne Cole)

Euro jumps on Greek package, Aussie at 5-mth high