Sterling rallies on Treasury plan

The euro rallied strongly on Monday after eurozone leaders agreed on a region-wide bank rescue plan, at an emergency Paris summit on Sunday night. The eurozone currency climbed 0.6 per cent against the dollar to $1.3637, and added 0.1 per cent against the yen at Y136.99. It was up 0.5 per cent against the pound at £0.7962. Under the bail-out, which is modelled on measures unveiled by Gordon Brown last week, eurozone members will offer up to five year guarantees for new bank debt at commercial rates. The form of the guarantees will vary according to each country’s need, with individual members due to make more detailed announcements on Monday. Marco Annunziata at UniCredit said: “EU policymakers in Paris have risen to the challenge, and stolen the limelight from the G7 in Washington. After much hesitancy, European policymakers... [read full story]