Euro falls on vague promise of European Union deal to help Greece amid debt crisis

Euro falls on vague promise of deal to help Greece

BRUSSELS — The euro has fallen on currency markets after EU President Herman Van Rompuy announced a deal to help Greece but gave no sign of solid financial backing.

Having been trading up near the $1.38 level, the euro has slipped back towards the $1.37 mark.

Neil Mackinnon, global macro strategist at VTB Capital, said Van Rompuy’s announcement Thursday will be seen as a “disappointment” and that the euro is “still in the doldrums” because Van Rompuy gave no firm offer of financial aid.

Van Rompuy said only that countries that use the euro are ready to take “coordinated measures” if necessary to help Greece stave off default.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

BRUSSELS (AP) — European Union President Herman Van Rompuy says countries that use the euro are ready to take “coordinated measures” if necessary to help Greece out of its debt crisis.

Van Rompuy, speaking at a summit of 27 EU leaders in Brussels, gave no firm offer of financial aid to Greece, and insisted that Greece hadn’t asked for any.

He said, “euro area members will take determined and coordinated action if needed to safeguard stability in the euro zone as a whole.”

Nervous markets worldwide are watching for concrete assurance that the 27-nation European Union can help Greece stave off a default and keep the crisis from spreading to other vulnerable countries, threatening Europe’s hesitant economic recovery.