Euro Recovers Vs Dollar After Hitting 16-month Low

Published January 9, 2012 9:18PM (EST)

NEW YORK (AP) — The euro rose against the dollar Monday after hitting a 16-month low overnight. The Swiss franc gained against dollar after the Swiss National Bank chief resigned.

German Chancellor Angela Merkel gave the euro a slight boost after saying that European leaders will have a new treaty with tougher fiscal rules by the end of this month or by early March. European leaders agreed last month to make new fiscal rules. Merkel made the comments after a meeting with French President Nicolas Sarkozy Monday.

The euro edged up to $1.2762 in late trading Monday from $1.2724 late Friday. The euro fell as low as $1.2676 overnight, its lowest point since September 2010.

Swiss National Bank chief Philipp Hildebrand resigned Monday amid a public uproar over his private currency deals. Hildebrand has worked to keep the value of the Swiss franc down. The Swiss franc's value had jumped last year as investors sought safer investments as Europe's debt crisis spread. The rising value of the Swiss franc was hurting its tourism industry and making its exports more expensive.

The Swiss National Bank set a limit in September of 1.20 francs per euro. The central bank said Monday its policy would not change after Hildebrand's resignation. The dollar fell to 0.9506 Swiss franc late Monday from 0.9550 Swiss franc late Friday.

In other trading Monday, the British pound rose to $1.5450 from $1.5426. The dollar fell to 76.89 Japanese yen from 77.02 yen and to 1.0243 Canadian dollar from 1.0266 Canadian dollar.

By Salon Staff

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