Euro rises against dollar after Dutch bank rescue
The dollar fell against the euro and rose versus the yen in European trading on Monday after the latest banking-sector bailouts and news that world leaders plan summits on the financial crisis.
In London morning trading, the euro rose to 1.3485 dollars from 1.3408 dollars late in New York on Friday.
Against the Japanese currency, the dollar gained to 102.08 yen from 101.63 yen on Friday.
"The main news over the weekend has been the Netherlands government's 10-billion-euro injection into ING and the Korean government's 130-billion-dollar support package for its banking system," said Barclays Capital analyst Moyeen Islam.
The Netherlands on Sunday announced a 13.4-billion-dollar bailout for ING, one of the world's largest banks.
South Korea meanwhile on Sunday announced a government guarantee worth up to 100 billion dollars on foreign borrowing by its banks in a bold move to stabilise turbulent financial markets.
Separately, it will supply 30 billion dollars from foreign reserves as soon as possible to local banks and exporters to ease a dollar shortage which has been driving down the won.
Meanwhile the yen fell on Monday as plans for summits on the global financial crisis helped to reassure skittish investors, dealers said.
US President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso on Saturday agreed to hold a series of summits on the global financial crisis, said a joint statement.
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