Euro gains on outlook for greek confidence vote

The euro gained against the dollar and yen as investors speculated Greek Prime Minister George Papandreou will win a confidence vote in parliament today, a key step toward getting more aid for the Mediterranean nation.

The greenback dropped against all of its 16 most-traded counterparts as stocks and commodities rose and the Federal Reserve began a two-day policy meeting.

“The government in Greece is going to give the go-ahead -- they recognize that the market needs to believe that Greece is going to get that $12 billion tranche,” said Jessica Hoversen, an analyst in New York at the futures broker MF Global Holdings Ltd.

The euro rose 0.7 percent to $1.4408 at 4:52 p.m. in New York, from $1.4304 yesterday. The euro gained 0.7 percent against the yen to 115.59, from 114.80, and was little changed at 1.2111 per franc after reaching a record low versus the Swiss currency at 1.1947 on June 16.

Source: BusinessWeek.com