Investing.com – The euro extended its surge against the U.S. dollar on Monday, breaking above the 1.3 mark after European leaders agreed to provide a massive rescue package of EUR 745 billion to tackle the euro zone debt crisis.
EUR/USD hit 1.3094 during early European trade, a 4-day high; the pair subsequently consolidated around 1.3046, shooting up a staggering 2.32%. The pair was likely to find resistance at 1.3342, the high of March 30, and support at 1.2515, Thursday's low and a 14-month low.
Earlier in the day, 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.
"We have closed ranks to save the euro," Reuters quoted French Finance Minister Christine Lagarde as telling Europe 1 radio after the 11-hour meeting in Brussels ended in the early hours of Monday.
The single European currency also soared versus the yen, with EUR/JPY advancing a huge 4.23% to reach 121.73.
The euro's sharp ascent against the dollar also came after official data showed that French industrial production grew faster than forecast in March.
EUR/USD hit 1.3094 during early European trade, a 4-day high; the pair subsequently consolidated around 1.3046, shooting up a staggering 2.32%. The pair was likely to find resistance at 1.3342, the high of March 30, and support at 1.2515, Thursday's low and a 14-month low.
Earlier in the day, 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.
"We have closed ranks to save the euro," Reuters quoted French Finance Minister Christine Lagarde as telling Europe 1 radio after the 11-hour meeting in Brussels ended in the early hours of Monday.
The single European currency also soared versus the yen, with EUR/JPY advancing a huge 4.23% to reach 121.73.
The euro's sharp ascent against the dollar also came after official data showed that French industrial production grew faster than forecast in March.