Pound euro exchange rate strengthens; European finance ministers refuse to fall for Greek words

Written by Sam Coventry Friday, 10 February 2012 14:19

The pound euro exchange rate is half a percent higher on yesterday's close; the GBP to EUR rate is at 1.1960.

"The Pound strengthened against the Euro this morning, rising from a low of 1.1898 in early trading and was up 0.5% by midday in London, as European finance ministers refused to release a bailout package for Greece, even after the government agreed on austerity measures yesterday," says an afternoon exchange rate note from Adam Solomon at UK money transfer company TorFx.

Investors subsequently shunned the Euro, as the mini-revival following the Greek deal was tempered by further delays in a resolution being announced.

The Pound rose for the first time in four days against the Euro, reducing the weekly decline.

The Greek Finance Minister Evangelos Venizelos said his Euro-zone counterparts refused to approve a €130 billion aid package because the austerity plans fell short of their demands.

The Pound also rose earlier in the day, after a government report showed that factory prices rose in January the fastest pace in nine months, indicating that inflation won’t slow as quickly as officials will hope.

The Euro declined from a two month high against the U.S Dollar following news that an aid package for Greece would be further delayed.