Euro jumps to four-month high as Germany green lights rescue fund

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The euro hit a four-month high today against the US dollar after German lawmakers said the country can now approve Europe's rescue fund.

Rejecting a complaint from an MP that the rescue fund - known as the European Stability Mechanism (ESM) - was a violation of Germany's sovereignty, the country's Constitutional Court has now paved the way for Germany to act to support the eurozone. The euro has been climbing for the last few weeks in anticipation of further support and after today's announcement it set a fresh four-month high of $1.29, before falling back slightly. It is currently trading at $1.2889. Equity markets are also firmer after the news. The German DAX is up 0.7% at 7,362 points, while the French CAC 40 is ah...

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