The euro has jumped and stock markets have risen on reports that eurozone leaders have agreed the details of a plan to rescue debt-ridden Greece.
Leaders had finally agreed an interest rate at which to lend money to Greece, should it be needed, the reports said.
As a result, the euro gained more than 1 cent on the dollar, to $1.3466, while the Athens stock exchange rose 3.4%.
This was despite the fact that leading ratings agency Fitch downgraded Greek government debt earlier on Friday.
Other leading European markets also gained ground, with the UK's FTSE 100 index up 1%, Germany's Dax gaining 1.3% and France's Cac 40 rising 1.8%.
The in US, the main Dow Jones index briefly breached 11,000 points for the first time in 18 months, before closing up 0.6% at 10,997.
The euro also rose slightly against the pound, to 87.630 pence.
Loan deal
Last month, the EU and IMF announced plans to provide a 22bn-euro (£20bn; $29.5bn) safety net that could be drawn on should Greece be unable to raise the funds it needs to pay off its debts.
But this did little to calm investors' nerves as few details of how the plan would work were revealed.
There were even concerns that disagreements between eurozone partners about the precise details of any rescue package may not be resolved.
As a result, the cost of borrowing on the financial markets for the Greek government kept on rising, reaching record levels of 7.5% on Thursday.
Reports now suggest that eurozone leaders have agreed a rate at which to lend money to Athens, which means it will not have to rely on raising funds in the financial markets.
This will be lower than the market rate, making it cheaper for Greece to borrow money.
Post je objavljen 11.04.2010. u 09:05 sati.