NEW YORK: The euro firmed against the US dollar on Friday after the European Central Bank said it would accept a wider range of collateral, including assets with lower quality in attempts to ease strains on the region's banking sector.
The changes include moves to accept residential mortgage-backed securities, securities backed by loans to small and medium-sized firms, auto loans, leasing and consumer finance ABSs and commercial mortgages rated as low as 'triple B'. .
The euro recovered some of Thursday's losses o n the news even though the speculation about the ECB's collateral was already being discussed in the market on Thursday.
The euro hit the ses sion's pea ks of $1.2583 and was l a st at $1.2565, up 0.2 percent, af ter falling to it's lowest levels in about a week on Thursday.
"Anytime you can get the ECB more involved in this process, the market views that as a positive development.They're the ones who can print the money," said Bob Sinche, global head of currency strategy at RBS Securities in New York.
"The official anouncement hit the market in an exceptionally quiet morning."
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