NEW YORK — The dollar soared against the euro Monday as a European rescue deal for Ireland failed to calm investor worries about the prospect of bailouts for other European countries.
In morning trading in New York, the euro was worth less than $1.31 for the first time since Sept. 21. It dropped to $1.3094 from $1.3237 late on Friday.
The fear about a spreading debt crisis in Europe gave the dollar a boost against currencies around the world as investors sought safety. The U.S. currency tends to gain in times of international turmoil and investor anxiety.
The British pound fell to $1.5540 from $1.5602, while the dollar rose to 84.32 Japanese yen from 84.07 yen. The dollar also gained against the Canadian and Australian dollars.
The European Union agreed on Sunday to give euro67.5 billion (about $89 billion) in bailout loans to Ireland, and sketched out new rules for future emergencies in an effort to restore faith in the euro.
But borrowing costs for Spain and Portugal are still rising, indicating investors remain nervous about financial conditions in those countries.
