Euro rates fall, USD cheaper, as Eurozone debt deal announced

Exchange rates for buying Euros have started to fall as leaders agreed a package to contain the Greek debt crisis. After late-night talks, private banks holding Greek debt have agreed to write off 50% of their losses, while banks must also raise more capital in the future to protect them against any future default. The European bailout fund has also been increased to about €1trillion.

The deal is not as ambitious as some had hoped but is as good as was realistically achievable, according to analysts.

The Euro has already strengthened (become more expensive) by 1c against the Pound, while in a knock-on effect we have seen rates for buying US Dollars improve. Sterling is down against most other currencies.