Euro falls despite Irish bailout

| November 29, 2010
Euro falls despite Irish bailout

The euro has today hit a fresh low despite news that Irelanda��s rescue package has been signed off.

The single currency dipped to $1.3181 – its lowest level since late September – as investors digested the news of Irelanda�?s bailout.

Full details of the rescue package, which is worth a��85 billion (A?72 billion), will be confirmed by the Irish Government once it has been approved by all 27 EU ministers a�� which includes UK Chancellor George Osborne.

There are still fears that the debt crisis could spread to weaker economies, such as Portugal or Spain – despite reassurances from both countries that the Irish bailout will stabilise the euro zone.

Speculation continues to mount that Portugal will be next in line for a bailout – something which the Portuguese Government and the EU has strongly denied.

However, today US economist, Nouriel Roubini, said in an interview published in business daily Diario Economico that a�?a bailout for Portugal is becoming increasingly likelya�?.

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