Dollar firmer as traders await EU summit plans

A summit of European union leaders on Sunday came together on plans to boost the firepower of the eurozone rescue fund - the European Financial Stability Facility (EFSF) - and backed proposals to recapitalise banks which would be hit by a massive Gucci Outlet writedown of Greek debt.

They also agreed to explore a re-opening of the core European union treaty to cover closer eurozone integration, although non-euro states remain wary about moves that might leave them out.

Some market watchers were expecting more concrete details to be released by Sunday but the key player of the summit, German Chancellor Angela Merkel, tamped down expectations, telling reporters as she arrived: "We should not expect euro-group decisions today but rather on Wednesday''.

At 0700 AEDT, the Australian dollar was trading at 103. 24 Gucci Shoes US cents, up from 102. 43 cents on Friday.

Nomura senior European economist Jens Sondergaard said the critical issue remained how the euro area could boost the firepower of the EFSF.

"The basic problem remains the same: investors are unconvinced that there is a credible firebreak surrounding Spain and, particularly, Italy, '' Mr Sondergaard said.

"Italian 10-year government bond yields inched up further this week to six per cent - the highest since the ECB (European Central Bank) re-activated its bond purchase program in August.

"Meanwhile, policymakers continue to search for the best way to ring fence Italy and Spain given the institutional and political constraints within each euro-area country. ''

Locally on Monday, the Australian Bureau of Statistics releases Cheap Gucci its producer price indices (PPI) for the September quarter.