Euro gains on German plans to nationalize lender

Story link: Euro gains on German plans to nationalize lender

The euro strengthened Thursday after German Chancellor Angela Merkel’s cabinet approved draft legislation that would allow the German government to nationalize Hypo Real Estate Holding (FWB: HRX), the nation’s second-biggest commercial property lender, in hopes of helping the regional economy in the Eurozone.

In addition, Germany’s finance minister said that there is nothing to rumors that the euro could break up.

Meanwhile, the US dollar and the Japanese yen were both weaker on reduced demand, while the dollar gained on the yen.

In late morning trade in New York, the dollar traded at $1.2713 to the euro while it took ¥119.6224 to buy a euro and the yen traded at ¥94.095 to the greenback.

The Australian dollar gained on the yen and the dollar as the yen traded at ¥61.0214 to the aussie and the Australian currency was worth 64.85 cents US.

Meanwhile, the Canadian dollar gained on the US currency on the possibility that demand for oil and metals, which account for about half of Canada’s export revenue, will increase.

At just past 11 a.m. in New York, the loonie traded at C$1.2471 to the dollar.

The pound traded lower at 88.76p to the euro but it gained on the US dollar, which traded at $1.43223 to the pound, on a higher demand for the UK currency.