Euro rises to 2-month high vs dollar on Greek deal

NEW YORK -The euro jumped to a 2-month high against the dollar Thursday after Greek leaders agreed on a cost-cutting plan that should prevent the country from defaulting on its debt.

The deal was the first of two steps needed in order for Greece to receive $170 billion from its lenders. Greece is close to reaching an agreement to sharply reduce what it owes private investors.

Finance minister from the 17 countries that use the euro are meeting in Brussels Thursday to discuss the plan and decide whether to release the bailout funds.

Without the cash, Greece could default on its debt next month. A default would hurt European banks and disrupt financial markets.

The euro rose to $1.3296 in afternoon trading from $1.3254 late Wednesday. The euro rose as high as $1.3321 Thursday, its highest point since Dec. 12.

Traders also bought euros after European Central Bank president Mario Draghi said the economies in the euro area are stabilizing. He also said the central bank will keep its key interest rate at a record low as it waits to see if the euro zone needs more help to stay out of a recession.

The dollar was mixed against other currencies.

The British pound rose to $1.5827 from $1.5814. The dollar fell to 0.9110 Swiss franc from 0.9131 Swiss franc and to 99.37 Canadian cents from 99.60 Canadian cents.

But the dollar rose to 77.49 Japanese yen from 77.01 yen.