Euro surges on bets Greek deal is soon to be concluded

Euro surges on bets Greek deal is soon to be concluded

10 July 2015, 09:04

On Friday the euro hit one-and-a-half week highs versus U.S. dollar, lifted by hopes that the Greek deal will be reached before the end of the week.

EUR/USD hit 1.1132 during European morning trade, the pair's highest since July 1; the pair was last at 1.1113 rising 0.62%.

Late Thursday, cash-strapped Greece offered to make spending cuts and lift taxes, in a last-ditch chance to receive another bailout from Europe before the country slips into bankruptcy.

A 13-page document sent to Greece’s creditors underscores plans to cut fiercely protected privileges such as pensions, tax breaks for the country’s islands and military spending. In exchange, Greece wants a three-year €53.5bn loan agreement to save the nation from bankruptcy and kickstart its damaged economy.

According to people with knowledge of the matter, the proposals were sent at 10pm Greek time (8pm British time) to all three creditors and the president of the euro group of finance ministers, Jeroen Dijsselbloem.

The Dutch finance minister must sign off on the reforms before they are submitted for further discussion to EU leaders.

A final decision about whether to grant the country additional emergency loans is planned on Sunday.

Meanwhile, the Greek government extended bank closures and the €60 daily limit on cash machine withdrawals until Monday.

Elsewhere, demand for the greenback remained weaker after data on Thursday signaled that U.S. jobless claims rose to their highest level since February last week.

The Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending July 4 increased by 15,000 to 297,000 from the previous week’s total of 282,000.

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