Date: Monday 02 Jul 2012
The euro staged its biggest one day rally against the dollar since last October on Friday as Eurozone leaders agreed on measures to stabilise banking systems and reduce borrowing costs in Spain and Italy.
The single currency rose to $1.2658 from $1.2428 in on Thursday as EU leaders said its rescue fund, the European Stability Mechanism, or ESM, could be used to stabilise banks.
EU leaders said steps would be taken to set up a single supervisory body for Eurozone banks by the end of the year and also agreed on a string of measures to boost European growth worth around €120bn.
The euro registered a 2.4% monthly gain against the dollar.
Against the yen, the euro rallied to a one-week high of ¥101.39 as risk appetite picked up while the greenback gained 0.6% to ¥79.89.
The dollar index, which measures the US currency against a basket of six other major currencies, declined to 81.658 from 82.793 on Thursday. The index was down 1.7% in June.
Sterling traded at $1.5677 from $1.5498 the previous session while the euro climbed 0.8% to 80.79p.
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