Daily currency report

The euro rose against the pound and to its highest in nearly a month against the dollar after eurozone finance ministers approved a €30 billion emergency aid mechanism for debt-plagued Greece but stressed Athens had not requested the plan be activated yet. Sterling suffered the impact of the Greece bail out plan after falling from a seven week high however was able to hold steady against the greenback adding to gains made last week on a short-covering.

Sterling

Sterling fell against the euro, retreating from a seven-week high as the European single currency shot up after eurozone finance ministers agreed a rescue package for debt-ridden Greece. Despite its losses against the euro, the pound hit an eight-week high versus the dollar. The greenback had slumped against a basket of currencies as news of the Greek aid plan increased demand for riskier assets to the detriment of the safe-haven US currency.

US dollar

The US dollar was down against both the pound and euro as Greece bailout details emerged from the eurozone. This was enough to crank up the appetite for risk in the market much to the detriment of those holding greenbacks.

Euro

The euro surged against a basket of currencies including the dollar, pound and yen after the 16 nations using the single currency unveiled a huge financial lifeline for Greece, but analysts warned the bounce was unlikely to last. With the improved clarity of the aid plan and the enhanced ability of Greece to finance itself in the market, the single currency has seen significant gains as a consequence. However, there have to be questions over the durability of the bounce, in particular markets will be asking just how long will it be until the market focuses its attention on other weak fiscal stories within the eurozone.

Japanese yen

The yen found itself down against both the pound and the euro following Japan's finance minister, Naoto Kan, suggesting he favours a weaker yen. He also reiterated that he would not ask the Bank of Japan to increase its debt purchases, indicating government pressure on the central bank to ease policy is driven more by the currency movement than politics.