Euro jumps more than 1 cent against greenback


AFP

TOKYO–The euro jumped more than one U.S. cent after news that European finance chiefs had agreed a crucial deal to provide a massive bailout to debt-wracked Greece. The common European currency jumped to US$1.3291 within minutes of the announcement from Brussels, from US$1.3185 immediately before. It later eased back to change hands at US$1.3265 but was still up from the US$1.3237 it reached in late trade Monday in London. It also gained to 105.75 yen after the deal, before edging back to 105.54 yen, compared with 105.36 yen in London.

The dollar firmed to 79.69 yen from 79.59 yen. New York markets were closed for a public holiday. After marathon talks that ran from Monday into the early hours of Tuesday in Brussels a source said: “We have the essentials of the deal.” Some others sold the yen for the euro to stop losses after seeing the euro’s rise, he said. Eurozone finance ministers gave the green light to a 130-billion-euro (US$171 billion) rescue package for Athens, in exchange for strict surveillance of its finances over the coming years. The deal will bring Greek government debt down to 120.5 percent of gross domestic product by 2020, a eurozone government source told AFP.