The euro climbed above the psychologically significant level of
USD1.25 amid rising optimism that at a meeting later today world leaders will
insist on more policy action to solve the debt crisis. The euro touched
USD1.2525, up from USD1.2493 on Monday, but failed to keep its position above
USD1.25. Even this modest improvement will probably be only temporary, if G7
finance ministers and central bank governors do not suggest concrete measures.
The ICE dollar index tumbled to 82.397 from 82.528 yesterday. The aussie gained
0.51 percent against the U.S. dollar, as the Reserve Bank of Australia reduced
its cash rate to 3.5 percent. The British pound and the Japanese yen changed
little.