Officials with the Group of 20 nations and the International Monetary Fund are set to convene Friday for two days of meetings in Paris to discuss methods of controlling the sovereign debt crisis, published reports indicate.
The 17-member single currency was gaining value against the greenback, achieving its top gains since early 2011, Bloomberg reports. The euro also is increasing in value against the Japanese yen, notching its largest increase since early September.
But despite the gains, one high-level economist served as a voice of reason and issued words of warning.
"It's still very fragile. It can go wrong on (any) of these different pillars and the risk that (for) one of these pillars, there is not a clear decision, means that the whole thing can still unravel again," senior economist Elwin de Groot with Rabobank told Reuters. "Basically that means that we expect (German) yields to fall back again and possibly for the Bunds to hit the previous peaks and maybe even go above that before that final solution is … forced by the market."
Yields on Spanish and Italian government bonds were gaining after Standard & Poor's cut Spain's credit rating, according to Reuters.
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