Source: ForexYard
Good news for the 17-nation currency as Europe’s finance ministers met today to discuss a possible increase in the rescue fund.As a result of the meeting, European stocks extended the biggest first-quarter gains since way back in 2006 and the Euro appreciated whilst default risk dropped.
The Euro made gains of 0.4% over the U.S dollar and the cost of insuring European sovereign debt against default broke a two-day increase.
The first Quarter saw the Euro appreciate 3% versus the U.S dollar in largest quarterly gain in a year, also showing a boost of 9.9% against the Yen in the same period, its biggest quarterly gain in 11 years.
Officials met today to discuss a possible increase of the resuce funds. The increase on emergency lending was said to be close to 940 billion euros which would be set to go until mid 2013.
In the end, the Eurozone countries came to an agreement to boost their firewall against the debt crisis to roughly 800 billion euros. This was officialy announced by Austrian Finance Minister Maria Fekter in Today’s meeting.
The real significance surrounding the meeting today was not about how much funds are increase by, but its do with the commitment shown by the European finance ministers to tackle the issue and boost funding levels.
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