Increased pressure on euro zone officials to solve the sovereign debt crisis prompted the Japanese yen and the U.S. dollar to drop in value as global stocks rallied following officials' efforts to address the crisis and prevent the contagion from further spreading, according to Bloomberg.
Three currencies that advanced against the world's reserve currency are the South African rand, the South Korean won and the New Zealand dollar. Borrowing expenses associated with the Tuesday
auctions for Spanish and Italian debt drove the euro to stop two days of gains when held against the U.S. dollar.
Officials from the euro zone "heard from everybody around the world" last week in the U.S. capital, U.S. Treasury secretary Timothy Geithner told "World News With Diane Sawyer" on ABC. The debt scourge is "starting to hurt growth everywhere, in countries as far away as China, Brazil and India, Korea. And they heard the same message from us they heard from everybody else, which is it's time to move."
Officials are examining methods to widen the European Financial Stability Facility so that the device may be used for the debt contagion, an executive board member of the European Central Bank said.
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