Euro Rises vs. Dollar as EU Summit Begins, ECB Rates Hike Expected

The euro advanced against the US dollar today after the leaders of the European Union began their two day meeting in Brussels to discuss the way out of the debt crisis.

Traders hope that EU leaders will find solution to Europe’s issues at the two-day summit, increasing bets that the European Central Bank will increase the interest rates. The euro weakened earlier as Moody’s Investors Service downgraded the ratings of 30 Spanish banks and Portugal’s Prime Minister Jose Socrates resigned yesterday.

EUR/USD rose from 1.4059 to 1.4193 as of 14:52 GMT today, following the earlier drop to 1.4054.

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