The euro rebounded in Asian trade on Monday after eurozone finance ministers agreed on a bailout of 10 billion euros to Cyprus, the island faces a looming deadline to gain support for package.Final rescue agreement occurred after 12 hours marathon talks between Cypriot President Nicos Anastasiades and the European Union, European Central Bank and International Monetary Fund.
The ECB had threatened to pull emergency funds to the country s lenders if Nicosia failed to agree on a rescue plan for Monday, raising fears of a banking crisis that threatened to further erode confidence in the troubled eurozone.In Tokyo morning trade, the euro brought $ 1.3044 and 123.79 yen, the strengthening of $ 1.2986 and 122.72 yen late Friday in New York.
Last week, the euro took a beating as traders sold the unit beset by fears over Cyprus, which faced a huge public backlash against terms of an initial bailout agreement had slapped a tax on all personal bank savings.Markets fears that failure to reach a deal could see the tiny Mediterranean country leaving the 17-nation euro area with borders overflowing consequences to other bloc members with problems such as Italy and the agreement early Monday Spain.The involves dividing the island s second largest lender Laiki
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