Value of the Euro is up finally, after being on a decline for more than a year and this aims at bringing some respite to the European investors.
The rise in Euro is a result of the help that a debt-ridden Greece is going to receive, from the International Monetary Fund (IMF), to pay of all its dues. The new value of the Euro is $1.3237, which is quite a substantial rise from the earlier value of $1.3220.
Managing Director of IMF, Dominique Strauss-Kahn met with German legislation officials and finalized a 120 billion Euro package for Greece, for a period of three years. Even the Euro Stoxx 50 Index, saw a 0.8% increase.
“The market sees a bigger package for Greece, covering three years, as a bigger backstop. This is helping to address some investor fears and giving some support for the euro. But in the bigger picture the euro remains under pressure and I'd continue to sell rallies”, informs Kenneth Broux, Market Economist at Lloyds Banking Group.
The objective of the IMF is to provide aid to needy countries at the soonest, but that has not happened till now because of political constraints.
Alessandro Leipold, former Acting Director of IMF’s European Department feels that this has proved to be a major problem for IMF and added that IMF was able to help Hungary and Latvia, in their hour of financial crisis.
But he feels that it poses difficult in industrialized countries, as the situations take an egoistic turn there.
