euro

ON EUROPE

The euro has fallen against the dollar amid renewed debt fears in the region as the yield on Portugal's treasury bill sale climbed to nearly double that of its last issuance.

BONDS

European Union leaders have agreed to set up a permanent mechanism to bail out any member state whose debt problems threaten the 16-nation eurozone, the BBC reports.

The dollar rose against major currencies yesterday following more upbeat US economic data, while the euro took a beating after Moody's placed Spain's ‘Aa1' credit rating on review for a possible downgrade.

THE BIG QUESTION

Jeremy Cook, chief economist at foreign exchange brokers World First, gives his predictions for exchange rates in 2011.

The EU plans to make private lenders cover the losses of any future eurozone debt crisis, which will have a knock-on effect on government bond yields.

ON EUROPE

Germany, the strongest country in the eurozone, has vetoed any increase in the €440bn rescue package.