Investing.com – The U.S. dollar slumped against most other major currencies on Monday as fears over euro zone sovereign debt abated, following an agreement by EU finance ministers on a EUR 745 billion rescue package.
The greenback was down against the euro, with EUR/USD surging 2.2% to hit 1.3031 after European Union finance ministers agreed on the deal, which would give EUR 435 billion in new loans and EUR 59 billion under an existing lending program.
The Spanish finance minister, Elena Salgado, who unveiled the package, added that the International Monetary Fund was ready to provide EUR 250 billion separately.
Meanwhile, the dollar tumbled versus sterling, with GBP/USD jumping 1.33% to hit 1.5001 ahead of a key interest rate decision by the Bank of England. The pair also climbed after Britain's Conservative and Liberal Democrat parties said they were close to agreeing on a deal that would allow David Cameron, the Tory leader, to take power.
The dollar was also down against the Swiss franc, USD/CHF shedding 1.23% to hit 1.0946. In addition, the greenback slid against its Australian, Canadian and New Zealand counterparts: AUD/USD shot up 1.87% to hit 0.9048, USD/CAD plummeted 1.78% to hit 1.0241 and NZD/USD advanced 1.67% to reach 0.7264.
But the greenback was up against the yen, with USD/JPY gaining 1.73% to reach 93.18.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 1.54%.
Also Monday, the group of 20 finance ministers welcomed the EU's measures to ensure the stability of the euro zone. In a statement, the group said: "The G20 will continue to monitor closely the development of global markets and remains strongly committed to continue to work together to maintain global financial stability and ensure strong sustainable and balanced global growth."
The greenback was down against the euro, with EUR/USD surging 2.2% to hit 1.3031 after European Union finance ministers agreed on the deal, which would give EUR 435 billion in new loans and EUR 59 billion under an existing lending program.
The Spanish finance minister, Elena Salgado, who unveiled the package, added that the International Monetary Fund was ready to provide EUR 250 billion separately.
Meanwhile, the dollar tumbled versus sterling, with GBP/USD jumping 1.33% to hit 1.5001 ahead of a key interest rate decision by the Bank of England. The pair also climbed after Britain's Conservative and Liberal Democrat parties said they were close to agreeing on a deal that would allow David Cameron, the Tory leader, to take power.
The dollar was also down against the Swiss franc, USD/CHF shedding 1.23% to hit 1.0946. In addition, the greenback slid against its Australian, Canadian and New Zealand counterparts: AUD/USD shot up 1.87% to hit 0.9048, USD/CAD plummeted 1.78% to hit 1.0241 and NZD/USD advanced 1.67% to reach 0.7264.
But the greenback was up against the yen, with USD/JPY gaining 1.73% to reach 93.18.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 1.54%.
Also Monday, the group of 20 finance ministers welcomed the EU's measures to ensure the stability of the euro zone. In a statement, the group said: "The G20 will continue to monitor closely the development of global markets and remains strongly committed to continue to work together to maintain global financial stability and ensure strong sustainable and balanced global growth."