Euro Gains Following European Rescue Plan
Today the Euro gained broadly, leaving the Japanese Yen in the dark, as investors support European government rescue plans to resolve the liquidity problems in the banking systems, with the hope of stemming the worst financial disaster since the 1930s.
On Monday, Britain, France and Germany announced their rescue plans which is aimed at recapitalizing their respective banking systems, in order to take the sting out of risk aversion and accelerate the selling of the Japanese Yen.
The U.S is expected to announce a similar banking rescue plan by recapitalizing the major U.S. banks by injecting about $250 billion into the financial system in an attempt to calm the market. According to analysts, half of the $250 billion package will go to the top nine financial institutions in the U.S.
Japanese officials also announced a series of steps in order to stabilize financial markets. It includes enacting of a law which will enable public funds to be injected into regional banks.
On October 14, 2008 at 11:26 (GMT), the Euro rose by nearly 2% against the Yen to trade at 141.30 Yen. The Euro also gained 1% against the U.S. Dollar at $1.3740.