NEW YORK Jan 24 The euro extended gains on
Thursday, rising two percent against the yen and hitting
sessions highs versus the dollar, with traders citing optimism
about repayments of cheap three-year loans taken by banks from
the European Central Bank just over a year ago.
This suggests that the liquidity crisis that hit euro zone
banks a few years ago has eased and is viewed as positive for
the euro. Traders said there was broad buying of euros.
Banks took more than 1 trillion euros in the LTRO (long-term
refinancing operation) loans from the ECB. A Reuters poll showed
traders expected about 100 billion to be paid back next week.
The euro hit a high of 120.43 yen and was last at
120.37 yen, up 2 percent on the day. Against the dollar, the
euro hit the day's high of $1.3392 and last changed hands
at $1.3385, up 0.5 percent.