The value of the common currency of the European Union gained against the U.S. dollar on Wednesday following speculation that Greece is set to take action to remain part of the 17-nation bloc as the country prepares for a second round of elections this weekend, Bloomberg reports.
The euro also gained against the Japanese yen as the Aegean nation prepares for Sunday elections. The first round of elections in early May did not produce a clear victor, which spawned increased concerns about Greece's stability and capacity to remain in the euro bloc.
"Markets are very uncertain," chief currency analyst Peter Rosenstreich with Swissquote Bank told Bloomberg. "When it becomes a coin toss, and there is the possibility of significant price action in either direction, traders are likely to look for a neutral position. It doesn't take much to push the euro up in this market condition."
During the past six months, the euro has dropped 3.6 percent of its value against the world's reserve currency as it has emerged as the worst-performing of the 10 developed nation monetary units that the news service tracks.
Also propelling the upward drive of the euro on Wednesday were stronger-than-anticipated economic data in the euro zone, The Wall Street Journal reports.
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