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According to Reuters, the euro reached $1.4360 in the morning session, representing a climb of 0.3 per cent, spurred on by analysts' expectation that a key confidence vote in the European nation will finish favourably for prime minister George Papandreou.
The politician is under pressure to push through drastic public spending cuts in order to meet the requirements of a European Union and International Monetary Fund aid package.
Speaking to the news provider, currency strategist at Lloyds Adrian Schmidt suggested there could be a "knee-jerk reaction" after the vote takes place with investors potentially not wanting to be as exposed to the money.
He said: "Going into the confidence vote people are thinking the Greek government will win and they don't want to be short of euros going into it."
This week, credit ratings agency Fitch said Greece will be in default if commercial lenders roll their loans over to the country.
Posted by Greg Secker
