Euro Recovers as G-20 Vows Joint Response to Economic Problems
Member-Nations to Deal with Economic Turmoil and Unemployment
The euro made a comeback Friday after five consecutive days of declines against the U.S. dollar and Japanese yen and reduced its decline to just above 2 percent in the last week.
It managed to pull through from the lowest level in 10 years after the Group of 20 nations made the commitment to come up with a effective and coordinated approach to the problems confronting the world economy.
The G-20 is composed of highly developed nations from the Americas, Europe and Asia that include the United States, United Kingdom, Australia, Canada, Russia and China.
The euro rebounded from an eight-month low against the dollar as central banks in Asia purchased euros and sold dollars.
"The welcome news is that the euro is not giving way," declared Callum Henderson of Standard Chartered PLC in Singapore.
The euro was at 103.03 compared to the yen in Tokyo from 102.64 in New York on Thursday. It went up to $1.3501 from $1.3465 Thursday. The lowest was at $1.3385 on Jan. 19.
Bloomberg reported that the G-20 members released a statement in Washington citing the "commitment in making a strong and coordinated international response to address renewed challenges facing the global economy, notably from heightened downside risks brought about by sovereign stresses, financial system fragility, market turbulence, weak economic growth and unacceptably high employment."
Meanwhile, the sovereign debt crisis persists in Europe.
Three countries in the European zone -- Greece, Portugal and the Irish Republic -- already have had bailouts.
Even Germany, which has the biggest economy in Europe, has developed its "weakest pace" since 2009 and is merely a little above tightening.
Italy is also being threatened following the lowering of the country's debt rating. Ratings of Greece, Spain, Cyprus and the Irish Republic have also been reduced this year.