THE 30 billion euro (£26.4 billion) bail-out on the table for the struggling Greek economy boosted the single currency against the pound and the dollar today.
The pound, which neared 1.15 against the euro on Friday, was trading at 1.135 following the deal, which will see Greece able to borrow from eurozone countries at cheaper rates than money markets if it decides to.
The euro also hit a two-month high against the dollar near 1.38 at one point as confidence in the single currency was lifted.
Fears about Greece’s huge deficit have seen long-term lending rates for the country shoot above 7% in recent days as worries over a sovereign default overshadow loom.
The deal on the table thrashed out by finance ministers over the weekend would allow Greece to borrow at around 5%, with another 10 billion euro (£8.8 billion) available from the International Monetary Fund if needed.
