Euro Rises as Debt-Stricken Greece and Spain Feel Economic Boost

Amid the debt crisis that has grabbled Greece and Spain, the Euro rose 0.6% reporting a highest increase since last seven months.

The increase was recorded on Wednesday which is believed to come as efforts of Greece and Spain towards boosting their economy in order to get relief from the debt problems. The dollar, on the contrary, fell significantly putting it under pressure.

Takako Masai, the Manager of forex at Shinsei Bank said that things are improving while Spain is putting in funds into its bank to eliminate the root cause of the crisis. The debt problem is nearing the end, he added.

Euro touched $1.3125 which was not seen since last two months at least. Greek economists call it an optimist change and a change better than what was expected in the week. It will also invite international help that will further help in putting to end the debt crisis.

The dollar was reported to fall by 0.2% to Y81.97. "Resolution of the U. S. fiscal cliff still seems some way off, and the economy may go over the cliff in January only to be hauled back up again soon after", said Simon Hayes, the Analyst at Barclays Capital. The Japanese yen and Sterling too were found to have risen against the US dollar.