The Euro jumped against other currencies after the European Central Bank cut its key lending rate by .25% to 1.25%, less than the expected .5% cut.

Analysts are suggesting that the decision by the ECB to reduce the rate by only a quarter percent may be due to the spreading view that the sharp decline in the world's economy is coming to an end.

The Euro rose 1.2 per cent or more than $0.50 to $1.3384 against the dollar. It climbed 2.2 per cent to Y133.10 against the yen and reversed earlier losses to stand up 0.3 per cent at £0.9123 against the pound.