The euro retraced from a 16-month low on Monday against the dollar, Reuters reports, as markets are await any announcements from a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Berlin. The two leaders will discuss closer fiscal co-ordination and ways to boost growth in the single currency area. The latest move in the euro is being attributed to short covering. The currency fell 13 per cent against the dollar in 2011, and has fallen by 1.9 per cent since the new year. Sentiment hasn’t been helped by a report by Der Spiegel over the weekend that stated that the IMF has was losing confidence that austerity measures and debt restructuring in Greece will be sufficient to get the country back onto a sustainable path.

This entry was posted by Lisa Pollack on Monday, January 9th, 2012 at 10:04 and is featured in The Lunch Wrap (9 Jan 2012) . Tagged with euro, Greece, Merkozy. Edit this entry.