The Estonian Prime Minister Andrus Ansip is in upbeat mood. He does not expect his Baltic neighbour Latvia to have to devalue the lat and sees signs the situation there is improving. He believes Latvia will continue to cut expenditures.
Even if there were a Latvian devaluation, Ansip doesn’t see Estonia being affected. He remains confident in the Estonian banking sector.
The comments will have lent EUR/USD some support, the pairing presently up at 1.3865.
