Euro falls despite Irish bailout

| November 29, 2010
Euro falls despite Irish bailout

The euro has today hit a fresh low despite news that Ireland’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 Ireland‘s bailout.

Full details of the rescue package, which is worth €85 billion (£72 billion), will be confirmed by the Irish Government once it has been approved by all 27 EU ministers – 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 bailout for Portugal is becoming increasingly likely”.

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