Euro on the Rise

Posted :

The euro rose 0.8% against the dollar today, for the second day in a row. Earlier in the week, the euro reached a four-year low. The dollar also rose 0.1% against the yen; however, it fell 0.9% against the British pound.

The rise of the euro is great news for the European market. Over the past three months, the euro continued to decline, falling over 12% due to fears about Europe's overwhelming debt crisis. Investors chose to invest in the dollar instead. The recent ascend of the euro is being attributed to Federal Reserve Chairman Ben Bernanke.

In a statement made earlier this week, Bernanke assured the public that recovery was underway, but not to look for a terrific change right away. He also did his best to calm fears that Europe's economic troubles could negatively impact the US economy.

The rise in the euro comes as a pleasant surprise, since news of increasing financial problems in Portugal, Italy, Ireland, Greece and Spain circulate the media. "Investors are attracted to currencies whose countries have solid balance sheets," said Brian Dolan, chief currency strategist.

Investors are also looking to metals for safety. Gold climbed and set a record at $1,246.50 an ounce as of yesterday.