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Euro steady after Irish Republic 85bn euro bail-out

The euro was steady against the dollar as markets opened a day after European ministers agreed a bail-out for the Irish Republic.

Ministers have reached an agreement over a bail-out worth about 85bn euros ($113bn; £72bn).

The deal will see 35bn euros go towards propping up the Irish banking system, with the remaining 50bn euros to help the government's day-to-day spending.

In early trade on Monday the euro was ahead by 0.40% at $1.3241.

It had earlier slipped to $1.3181, its lowest level since 21 September, before rebounding.

European stocks were also largely unchanged, with London's Ftse up 0.37% at 5,689.94, Frankfurt's Dax ahead by 0.27% to 6,867.77 and Paris's Cac up 0.52% to 3,748.10.

But Irish bank shares rose, with Allied Irish Banks up 8% and Bank of Ireland up 17%.

Meanwhile, yields on ten-year bonds in the Republic of Ireland, Portugal, Spain, Greece, Belgium and Italy were largely unchanged on Monday morning, as reaction to the bail-out was largely muted.

However, the price of oil rose to a two-week high above $85 a barrel, with US crude up $1.27, or 1.5%, to $85.03. Brent crude rose $1.08 to $86.66.

Meanwhile, European Central Bank policymaker Christian Noyer sought to bolster market confidence in the eurozone's rescue for the Republic.

Mr Noyer is the first member of the ECB's policy council to speak after eurozone ministers sealed the deal for Dublin on Sunday.

BBC News

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