Euro rises after government sets out bank rescue plan
The euro was on the up today, over news that the UK, German and French governments will be implementing a rescue package for their stricken banks. It is hoped that the joint plan will stabilise the financial market after an extremely worrying period last week.
The yen profited on the uncertainty in the financial markets last week, but on news of the new bailout plan began to fall rapidly against the euro as investors moved back to the higher-yielding currency.
The US government is also set to stabilise their financial market, with an injection of $250 billion into the US banking system with around half of the fund going to the top nine financial institutions.