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

Poland needs strong economy to benefit from euro zone entry: finance ministerPoland needs strong economy to benefit from euro zone entry: finance minister
WARSAW (Reuters) - All benefits that Poland may be able to get from a euro zone entry, including boosting its political stature in Europe, hinge on the country being economically strong, Finance Minis...
China Resources (Holdings) appoints new chairman, replacing SongChina Resources (Holdings) appoints new chairman, replacing Song
HONG KONG (Reuters) - China Resources (Holdings) Co Ltd <CHRESR.UL> has appointed a new chairman with immediate effect, replacing Song Lin who is being investigated by Chinese authorities, the f...
REFILE-UPDATE 1-Obama, Abe under pressure to salvage signature Pacific trade pactREFILE-UPDATE 1-Obama, Abe under pressure to salvage signature Pacific trade pact
(Adds missing word "said" in first paragraph) TOKYO/WASHINGTON, April 22 (Reuters) - U.S. Trade Representative Michael Froman arrived in Japan earlier than expected on Wednesday, Japanese media sai...
Australia inflation lower than feared, lessens rate hike riskAustralia inflation lower than feared, lessens rate hike risk
SYDNEY (Reuters) - Australian inflation was surprisingly tame last quarter showing a moderation that greatly lessened the pressure for a hike in interest rates this year and sent the local dollar sh...
China factory activity shrinks for fourth month, but pace of decline slowsChina factory activity shrinks for fourth month, but pace of decline slows
BEIJING (Reuters) - China`s factory activity shrank for the fourth straight month in April, signaling economic weakness into the second quarter, a preliminary survey showed on Wednesday, although th...

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.