Euro Gains as European Banks Post Better-Than-Expected Results
Originally posted on Bloomberg
The euro rose from a 10-week low against the dollar after European banks reported fourth-quarter results that beat some analysts’ forecasts, easing concern the region’s financial crisis will worsen.
The European currency snapped two days of losses versus the greenback and the yen after Commerzbank AG, Germany’s second- largest bank, posted a net loss of 809 million euros ($1.02 billion), compared with analysts’ median estimate for a loss of 851 million euros. ING Groep NV, the biggest Dutch financial company, had a loss of 3.71 billion euros, versus the 3.9 billion-euro loss it forecast last month.
The banks’ results “gave short-term relief to the euro,” said Nobuaki Kubo, vice president of foreign exchange in Tokyo at BBH Investment Services Inc., a unit of New York-based Brown Brothers Harriman & Co.
The euro climbed to $1.2617 as of 7:30 a.m. in London from $1.2582 late in New York yesterday. It earlier touched $1.2559, the lowest level since Dec. 4. Europe’s single currency advanced to 116.58 yen from 116.27 yen, and traded at 88.32 British pence from 88.37 pence.