Euro advances against dollar after Greek austerity announcement (Reuters) (03-03-2010)

NEW YORK, March 3 (Reuters) - The euro gained on the U.S. dollar on Wednesday after the Greek government endorsed a 4.8 billion euro austerity package, boosting hopes the heavily indebted country would get help from the European Union.

The euro gained roughly half a U.S. cent after a government source told Reuters the Greek cabinet decided on the plan, which included a rise in value added tax to 21 percent and a cut in public sector salary bonuses by 30 percent.

The euro briefly came under pressure after a German government spokesman said Germany would not offer any aid to Greece on Friday when Chancellor Angela Merkel meets Greek Prime Minister George Papandreou in Berlin.

In early New York trading, the euro was 0.4 percent higher on the day at $1.3657. Stop-losses were seen at $1.3680 with a technical target at $1.3693, traders said.

On Tuesday, the euro fell as low as $1.3432, its weakest since mid-May 2009. Greece's fiscal crisis has helped drive the euro down nearly 10 percent against the dollar since December.

Source: Reuters