Euro edges up as Greek debt pledges come in

NEW YORK – The euro edged higher against the dollar Wednesday as private investor endorsements of the crucial Greek debt writedown trickled in ahead of the Thursday deadline.

At 2200 GMT the euro was trading at $1.3148, up from $1.3113 late Tuesday.

The common currency had sunk Tuesday amid worries that not enough of Greece’s private creditors would sign on to make the 107 billion euro ($141 billion) debt writedown and bond swap deal go through.

The deal is a crucial part of the 237 billion second Greek bailout, aimed at preventing the country from defaulting on its debt, which could wreak havoc through the eurozone.

“European officials are confident that Greece will achieve a 75 percent participation rate,” said Kathy Lien of currency specialists GFT, referring to the minimum investor support needed to ensure the debt deal goes through for Greece.

However, she added, “A failed bond swap would send currencies and equities lower across the board.”

Markets will also be looking on Thursday to the policy meeting of the European Central Bank to see if it further eases monetary conditions.

But after last week’s injection of 530 billion euros into the banks, Lien said, “We expect the central bank to keep interest rates on hold.”

The dollar moved marginally against other currencies, rising to 106.68 yen from 106.06 yen but slipping to 0.9165 Swiss francs from 0.9188 francs.

The British pound rose to $1.5740 from $1.5720.