Euro rises on optimism over Irish debt crisis

The euro rose on Thursday as optimism that Ireland's debt crisis may be easing fuelled speculative buying, but the rally was seen undermined by peripheral risks elsewhere and position squaring into year-end.

The dollar was broadly softer after subdued U.S. inflation data on Wednesday reinforced the Federal Reserve's case for monetary easing.

"We view this as a short-term speculative rally in the euro, driven by weaker U.S. CPI and some optimism for Ireland as the IMF and EU arrive in Dublin for talks," said Manuel Oliveri, currency analyst at UBS in Zurich.

"There are other factors at play for the dollar. Year-end flows should be supportive as profit-taking versus emerging currencies fuels repatriation," he said. more

News - November 2010