Euro rallies after Greek bailout deal
The euro rebounded from a 10-month low today as German Chancellor Angela Merkel toasted the hard-won deal to rescue debt-laden Greece from financial ruin.
The single currency was up 1.25 cents against the US dollar to $1.3397 and 0.45p against sterling to 90.06p as concerns about Greece's woes eased.
It came after European leaders last night agreed an aid plan for Greece involving funds from eurozone states and the International Monetary Fund. The safety net will only be used if market lending to Greece dries up.
The deal was seen as a victory for Germany and Merkel, who demanded that the rescue would include the IMF and only come once Greece runs out of other options.
Speaking today ahead of a second round of talks with European ministers in Brussels, she said: "I am very pleased with the compromise reached yesterday. I believe Europe has proven its ability to act on an important issue.
"It is important in the long term that the currency, which has been such a success for freedom and cooperation, stays stable. That is why yesterday was a very important day for the euro."
