Forex Derby

Euro ticks higher vs dollar as Ireland hopes rise

Forbes |

In Brief...

The dollar dipped against the euro Friday as officials from Ireland, the European Union and the International Monetary Fund negotiated a financial aid deal for the country.. Ireland appears likely to receive a loan to bolster its troubled banks, which would ease fears that Ireland's troubles would lead to a broader loss of confidence in European nations and raise borrowing costs for other weak economies like Portugal and Spain.. Uncertainty over whether creditors would suffer heavy losses on their Irish investments have weighed on the euro for two weeks, dragging it down from a nine-month high of $1.4281 reached on Nov. 4. The euro remains significantly higher than a 4-year low below $1.19 it touched in early June, when Greece's debt problems had driven down the euro. Worries about slower growth in the U.S. and the Federal Reserve's plan to support the economy through lower interest rates helped tug the euro higher throughout summer and early fall despite lingering concerns about debt in Portugal, Spain and Ireland..

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