The euro shot to a new high for the year, hitting $1.325 a few hours into U.S. trading.
This euro strength could be catalyzed by reports from Greece that politicians have reached an agreement on harsh new austerity measures that are required for disbursement of the second bailout leaders agreed to in August.
The terms of this aid could also include more funding than the €130 billion ($170 billion) Greece was expected to receive after meetings in August.
Meanwhile, talks continue between representatives of bondholders and government officials on the terms of a hotly debated bond swap. While we’ve heard lots of rumours that these negotiations were also drawing to a close, they are somewhat less believable since we’ve been hearing the same murmurs for more than a month.
Check out the euro versus the dollar: