Euro steadies as Ireland bail out agreement is finalised.


The euro steadied against the dollar as currency markets opened today after it was confirmed that the Ireland’s EU bail out had been finalised.

Having earlier fallen to its lowest level since 21 September at $1.3181, the euro rebounded to $1.3200 and steadied out over the course of the morning.

Ministers finally closed the 85 billion euro bail-out agreement in Brussels yesterday, easing concerns of total economic crisis in the Irish Republic.

Irish Prime Minister Brian Cowen said that the bail-out was the “best available deal for Ireland” providing “vital time and space to successfully and conclusively address the problems we’ve been dealing with since the financial crisis began”.

He said that 10b euros would immediately be injected into the capital reserves of its banks.

European policy makers had also convened to discuss growing concerns over Spain and Portugal who are thought to be next in line for EU assistance.

Last week saw Portugal announce its deepest spending cuts in more than three decades in an attempt to reduce its debt to EU limits by 2012 and Spain too has taken precautionary measures to limit the threat of foreign investment withdrawal.

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