The euro gained against the U.S. dollar as the European Union leaders agreed on an emergency loan package to stop the Greece debt crisis from spreading to other weaker European countries.
The package along with IMF support might reach 750 billion euros. The European Central Bank plans to buy the region’s Government bonds and impose measures to address the economic strain.
An air of uncertainty hovers around the Greece rescue plan and other European countries over the ability to tackle the fiscal deficit in a deteriorating economy.
The euro gained after having fallen to $1.2510 last week. The euro still shows a resistance at $1.3; however it is down 9 percent since January this year.
The euro gained against the Japanese Yen. It stood at 121.78; last week it hit an 8 year low of 110.44.
The U.S. dollar fell against 1.2 percent against a basket of major currencies. The currency swap was reopened by the Federal Reserve on Sunday to ease the market strain in Europe .
Britain ’s Sterling gained after a fall to a one year low of $1.4475. The ongoing political indecisiveness regarding the Government formation pushed the Sterling to gain.
It is expected that the Bank of England will leave interest rates at 0.5 percent when it concludes its monetary policy committee meeting on Monday.
