Investment star Jim Rogers bought the euro in recent days, as it recovered a bit from its four-year low against the dollar amid promises by European nations to address their budget deficits.
But Rogers is unsure if the euro will continue to rally. Indeed, it already has pulled back from its two-week high to trade around $1.2270.
"I bought the euro Friday and Monday,” Rogers told CNBC. “I don't know if it's just a trading bounce or if it's going to be fundamentally sound from now on."
Rogers expresses some doubt that European countries such as Greece and Portugal will stick to their pledges to cut spending.
"I don't believe them, of course, but maybe they mean it this time," he said.
Each European country must commit itself to debt reduction to make the euro viable again, Rogers says.
"The EU says they are going to force everybody now to run a tight ship. It has to be everybody. If it's not everybody, is not going to work."
Separately, Rogers says he’s bullish on oil long-term because of the reduction in offshore drilling after the BP spill.
He’s not alone in his concern about Europe’s debt burden, and for good reason.
Spain and Portugal’s debt may “snowball” in the years ahead, according to a European Commission draft document obtained by Bloomberg.
The countries must enforce bigger spending reductions to meet their deficit targets, the commission says.
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