Dubai Bail-Out Pledge Boosts Euro

The euro pulled back from a two-month low against the dollar today on news that Abu Dhabi would back debt incurred by Dubai World, reducing fears that some of Europe’s largest banks would be forced to write-off billion in loans.

“There’s huge relief because banks were on the hook,” said Jonathan Gencher, Toronto-based director of foreign- exchange sales at Bank of Montreal, Canada’s fourth-largest lender.

Bloomberg

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