Wednesday, October 12, 2011

Euro jumps against dollar on Europe bank pledge (AP)

NEW YORK ? The euro soared against the dollar Monday after the leaders of France and Germany pledged to strengthen Europe's banks.

German Chancellor Angela Merkel and French President Nicolas Sarkozy said after a meeting Sunday that a comprehensive plan to stem the debt crisis would be announced by the end of the month.

They said it would include ensuring that European banks have enough capital. Merkel and Sarkozy didn't offer any other details of the plan.

In late trading Monday, the euro rose to $1.3650 from $1.3388 Friday. On Friday, the euro dropped after the Fitch ratings agency downgraded the debt of both Italy and Spain, raising fears that the debt crisis could spread to larger economies. Still, the euro has pared some of its losses this month after dropping 6.1 percent in September.

Investors have been selling the euro on fears that a debt default by Greece could harm Europe's banks, which hold Greek debt on their books.

Global stock markets also rallied on Monday following the announcement from Merkel and Sarkozy. The Dow Jones industrial average, the S&P 500 Index and the Nasdaq composite all closed about 3 percent higher.

In other currency trading the British pound rose to $1.5673 from $1.5553. The dollar fell to 76.69 Japanese yen from 76.82 yen, to 0.9035 Swiss franc from 0.9266 Swiss franc and to 1.0281 Canadian dollar from 1.0394 Canadian dollar.

Source: http://us.rd.yahoo.com/dailynews/rss/europe/*http%3A//news.yahoo.com/s/ap/20111010/ap_on_bi_ge/us_dollar

scarlett johansson ali lohan new york election new york election survivor south pacific survivor south pacific michelle williams

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.