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SMF Blogs > SMF European Analysis > September 2008 > Euro falls against dollar as Dexia gets $9.2 bln bailout

Euro falls against dollar as Dexia gets $9.2 bln bailout

Bloomberg.com reports the euro fell a second day against the dollar as France and Belgium led a state-backed rescue of Dexia SA, the world's biggest lender to local governments. The 15-nation currency also weakened against the British pound after Belgian Prime Minister Yves Leterme said Dexia will receive about $9.2 bln to shore up its capital. The dollar rose against the yen on speculation the U.S. Senate will salvage a $700 bln bank-bailout plan as early as tomorrow after Congress rejected it yesterday. The yen dropped against 14 of the 16 most active currencies as European stocks rose, reviving purchases of higher-yielding currencies funded in Japan. Dexia is being rescued after its shares had a record decline yesterday. The capital infusion comes two days after Belgium, the Netherlands and Luxembourg rescued Fortis, the largest Belgian financial-services company, Britain took control of Bradford & Bingley Plc, the country's biggest lender to landlords, and Germany bailed out Hypo Real Estate Holding AG.

Posted: 9/30/2008 8:56:20 AM by StockMarketFunding | with 0 comments


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