Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Forex Market Update: Euro Climbs After Cyprus Bailout Deal

Monday, March 25, 2013 8:49 AM
The euro soared against all major traded currencies on Monday after the Cypriot government reached a last-minute bailout deal with the Troika (the European Central Bank, European Union and the International Monetary fund) on Monday, averting possible banking sector collapse in the island nation. Earlier on Monday, the Cypriot government agreed to restructure its overstretched banking system by winding down its second largest bank, the Popular Bank of Cyprus, also known as Laiki. All deposits below euro 100 will be shifted to the bank of Cyprus, while unsecured deposits above euro 100,000 will be taxed, generating euro 4.2 billion. In return, the troika will provide euro 10 billion in financial assistance. During the Asian trading hours on Monday, the single currency of the 17-nation monetary union climbed as high as $1.3050 from $1.2989 late Friday in New York, according to EBS. According to the Wall Street Journal the euro traded at $1.3037 as of 0450 GMT. The euro soared against the yen 123.85 in Asian trading hours from 122.75 on late Friday. By afternoon, it traded at yen 123.70. The euro was under constant pressure last week after the Cypriot parliament downrightly rejected the EU’s proposal of taxing all deposits by flat rate of 9.9%. Later, The ECB’s warning that it will stop financial aid to Cyprus should it fails to reach a deal by Monday, fanned fears of possible financial system meltdown in Cyprus (in case no deal is made). Still, experts are not convinced that euro zone is completely out of woods. Speaking to the Wall Street Journal,  Shuichi Kanehira, head of FX spot trading at Mizuho Corporate Bank said, “Not everything is rosy even though there is now a deal over Cyprus. There are still concerns over Italy and euro-zone fundamentals that could weigh on the euro.”
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

Pimco CEO says firm to expand equities business: CNBCPimco CEO says firm to expand equities business: CNBC
NEW YORK (Reuters) - Pimco intends to expand its equities business and there will be no difference in the firm`s portfolio management following the departure of former Chief Investment Officer Bill Gr...
Italy pushes back structural budget goal as recession bitesItaly pushes back structural budget goal as recession bites
ROME (Reuters) - Italy will push back its target of reaching a balanced budget in structural terms, adjusted for the business cycle, to 2017, a year later than originally planned, Economy Minister Pie...
Portugal sounds out Spanish banks on Novo Banco sale: sourcesPortugal sounds out Spanish banks on Novo Banco sale: sources
MADRID (Reuters) - Portugal has begun sounding out Spanish banks on their interest in buying Novo Banco, the successor to the state-rescued Banco Espirito Santo (BES), several sources familiar with ...
U.S. confident can find balance with EU on investor rightsU.S. confident can find balance with EU on investor rights
WASHINGTON (Reuters) - The United States is keen to include investor protection in a trade pact being negotiated with the European Union and will work with EU officials to find the right balance, a se...
AT&T expects customer usage of NEXT to reach 50 percent in third quarterAT&T expects customer usage of NEXT to reach 50 percent in third quarter
WASHINGTON (Reuters) - AT&T Inc <T.N> expects that customer use of its equipment installment plan will have reached 50 percent in the third quarter, the company said in a regulatory filing...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.