Euro gains on Greek rescue talks

FRANKFURT, Germany, March 1 (UPI) -- The euro rose Monday while finance ministers worked on details of an agreement to bail out debt-burdened Greece.

The euro went from $1.3616 to $1.3622 and gained against the yen, reaching 121.66 yen from 121 yen on reports that European banks would buy about $40 billion in Greek debt that would help the country meet its obligations through May.

Germany, with the largest economy in Europe, is sure to be a major player in any rescue effort, even after German Chancellor Angela Merkel said a bailout was "not the case."

"We've got a treaty that does not include any provision for bailing out states. We can best help Greece by making clear that Greece does its own homework, just like it is doing at the moment," Merkel said in a Wall Street Journal report.

The Purchasing Managers Index for the eurozone rose from 54.1 to 54.2 in February, the highest level since August 2007.

"It does appear that the manufacturing sector is one of the region's bright spots at the moment," said Howard Archer, chief European economist with IHS Global Insight.