In a busy day for the single currency we have witnessed the humiliation of an ex-Prime Minister and the publication of the European Central Bank’s latest interest rate decision.
The Euro found support after Italian Prime Minister Enrico Letta won a confidence vote following a humiliating U-turn by ex-Prime minister Silivo Berlusconi. The disgraced former PM had repeatedly threatened to bring down the government if Letta’s Democratic People’s Party voted to expel him from the senate following his conviction for fraud.
The EUR/GBP Exchange Rate hit a high of 0.8370
Berlusconi had ordered five ministers from his centre-right People of Freedom Party to resign from the government in an attempt to force the nation to hold snap elections. His plan backfired after it became evident that several of his own senators would betray him and instead support the government.
Prior to the vote a defeated Berlusconi said; “Italy needs a government that can produce structural and institutional reforms. We have decided, not without internal strife, to back the confidence vote.”
With Letta’s government safe for another day investors saw the outcome as favourable but doubts remain over the stability of Italy’s government. Berlusconi may have been bested today but some analysts are predicting that he could still cause trouble at a later date.
The ECB meanwhile chose to keep its monetary policy on hold and interest rates at the record low level of 0.5% for a fifth consecutive month. The decision was expected by the majority of economists.
Current Euro (EUR) Exchange Rates
< Lower > Higher
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3594 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8369 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4530 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6486 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7355 <
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1946 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6880<
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6064 <
(Correct as of 14:30 pm GMT)
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