Euro gains to six-week high as Greece offers debt-buyback plan

Swiss Rates

Switzerland’s second-biggest bank said in a notice distributed to bank clients via the Swift system today that it will communicate the currencies involved in its plan to charge negative interest rates on cash balances, plus the thresholds and rates on an individual basis to those customers during the next five business days.

“If you see a major move in euro-Swiss, you’ll just tend to see demand for euros across the board,” said Molloy of FX Solutions. “It will tend to support the euro against the dollar.”

Europe’s common currency gained as much as 0.4 percent against the Swiss franc, the biggest jump since September, and rose to 1.2084 euros.

Yields on Spanish bonds due in 10-years fell to 5.2 percent, the lowest since March, while similar-maturity Italian debt dropped to 4.4 percent, the lowest in a year.

Fiscal Cliff

The euro advanced versus most of 16 major peers as U.S. Treasury Secretary Timothy F. Geithner and House Speaker John Boehner blaming the other for a standoff that may lead to more than $600 billion in tax increases and spending cuts in January.

Geithner said in an interview aired yesterday on CNN’s “State of the Union” that Republicans in Congress will be responsible for hurting the economy if they refuse to raise tax rates on the highest-income earners as part of a deal. Boehner, a Republican, said on the “Fox News Sunday” program that the White House is wasting time.

The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against currencies of six U.S. trading partners, declined 0.3 percent to 79.953, after falling to the least since Oct. 31.

Australia’s currency fell to the least in a week as amid speculation the Reserve Bank will lower borrowing costs at a meeting tomorrow. The nation’s statistics bureau said retail sales were unchanged in October after climbing in the previous two months. The figure compares with economist predictions for a 0.4 percent advance.

Interest-rate swaps data compiled by Bloomberg show traders see a more than 90 percent chance RBA Governor Glenn Stevens will cut the cash rate target by 25 basis points, or 0.25 percentage point, to 3 percent tomorrow, concurring with 19 of 28 economists in a Bloomberg News survey.

Bloomberg News

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