Ukraine cease-fire deal, ongoing Greece talks lift euro
Cease-fire in Ukraine and agreement by Greece and Eurogroup lifted euro over dollar on Thursday.
WASHINGTON (AFP) - A cease-fire in Ukraine negotiated overnight and an agreement by Greece and the Eurogroup to return to talks gave a solid boost to the euro over the dollar Thursday.
The common currency gained 0.8 percent on the US dollar from late Wednesday, to $1.1406, even though some doubts hung over what was achieved in the parallel sets of negotiations.
Those doubts, and surging Tokyo shares, also helped the yen pick up against both currencies.
After a marathon summit in the Belarussian capital Minsk, Russian President Vladimir Putin, Germany Chancellor Angela Merkel, French President Francois Hollande and Ukrainian President Petro Poroshenko announced they had agreed that Ukraine forces and pro-Moscow rebels would halt fighting at midnight Sunday Kiev time (2200 GMT Saturday).
Yet Poroshenko warned that he expected implementation of the cease-fire would not be easy, echoing cautious remarks from other leaders.
Meanwhile Greece s six hours of talks with eurozone finance chiefs over radically modifying its bailout program ended without any agreement, raising concerns the country could be on a track toward defaulting on its debt and exiting the eurozone.
But hours later Greek Prime Minister Alexis Tsipras and Eurogroup head Jeroen Dijsselbloem agreed to renew efforts to resolve differences.
The uncertainty in both situations, especially with Greece, will keep a cap on the euro s rise, analysts said.
"A meaningful upside should continue to elude the euro, with Greece seemingly no closer to reaching an elusive debt deal with its creditors," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
