Greece Reached Agreement on Austerity Measures - 10.2.2012

US Dollar The dollar gained some ground in Asian trading hours today, as the US unit’s index climbed to 78.73 after falling yesterday to the lowest level since 8 December 2011 (78.36). The US economy meanwhile continues showing signs of a moderate recovery. The Labor Department reported yesterday that the number of initial jobless claims fell by 15000 last week to 358000. Euro In Europe Greek Prime Minister Lucas Papademos said yesterday that the nation’s authorities had finally reached an internal general agreement on austerity measures required to receive a 130 billion-euro package of financial aid. Nevertheless the euro’s gains were somewhat limited as European finance ministers postponed the endorsement of the second bailout for Greece until the nation passes austerity measures into law, identifying 325 million euros in spending cuts. The euro touched yesterday a two-month high 1.3320 against the greenback, but dropped below 1.33 in the morning. Australian Dollar The Australian currency was among the worst performing majors in the Asian trading session. The aussie extended losses from a six-month high versus the dollar (1.0845) after the Reserve Bank cut its economic growth forecast and lowered inflation outlook. According to the central bank’s statement, the economy will expand by 3.5% in 2012, compared with a 4% gain projected in November, while consumer prices will rise by 3%, down from 3.25% previously expected. The aussie depreciated from 1.0786 to 1.0701 dollars by the end of the Asian trading session.