NEWYORK, Mar. 26 -- The euro rebounded from a 10-month low versus the dollar after European Central Bank President Jean-Claude Trichet said he welcomed a European Union agreement on an aid plan for Greece.
Europe's currency gained against 14 of its 16 major counterparts after Trichet said he was "happy" the region found a solution, toning down his earlier criticism over the International Monetary Fund’s possible involvement. The yen advanced from an 11-week low against the dollar on speculation Japanese exporters took advantage of its largest weekly loss this year to purchase the currency before the country's fiscal year ends next week.
"A change in Trichet's stance toward an aid plan for Greece triggered a knee-jerk buy-back of the euro," said Yuichiro Harada, senior vice president of the foreign-exchange division at Mizuho Corporate Bank Ltd., a unit of Japan's second-largest lender. "This change also helped ease concerns over discord among European leaders on how to resolve the debt problems in Greece."
The euro advanced to $1.3319 as of 9:25 a.m. in Tokyo from $1.3273 in New York yesterday, after earlier falling to $1.3268, the weakest since May 7. The currency traded at 123.16 yen from 123.08 yen. The yen climbed to 92.48 per dollar from 92.73 yesterday, when it fell to 92.96, the lowest level since Jan. 8.