The euro gained against the U.S. dollar on Friday after euro zone ministers agreed to extend Greece's financial rescue package by four months.
The agreement removed the immediate threat that Greece could run out of money next month and be forced out of the single currency area. The new leftist-led Athens government now can try to negotiate longer-term debt relief with official creditors."It certainly looks like we're moving away from disaster," said Sebastien Galy, senior foreign exchange analyst at Societe Generale in New York. "It should help a stress that has been building up in the market to be released."
Maybe a gradual exit from the Euro with promises to stay from the other laggards like Portugal will go a long way to solving this crisis. People will take a haircut but the Germans no longer have to prop up the bad debts from Greece going forward.
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