Euro falls after Reuters first with EU’s rescue fund decision delay

The euro fell about 80 pips against the dollar and yields on government bonds of weak euro zone states rose on March 23 after Reuters reported exclusively that European Union leaders were set to delay a decision on how to strengthen their multi-billion euro rescue fund beyond a summit this week, undermining market confidence and possibly prolonging the region’s debt crisis. Draft conclusions, prepared by euro zone officials for the summit and seen by Reuters, made clear that definitive decisions on the fund would now only be taken by the end of June, instead of at the March summit as leaders had been publicly suggesting, and as financial markets had been hoping.