European session:

The yen fell as stocks rallied worldwide on optimism European officials will contain the region’s debt crisis, damping demand for Japan’s currency as a refuge.

Greek two-year notes rallied, pushing the yield down 776 basis points to 26.05 percent, while the yield on benchmark German bunds, perceived as a refuge because of the nation’s AAA credit rating, rose two basis points to 2.89 percent. The MSCI Asia Pacific Index of regional shares rose 1.3 percent and the Stoxx Europe 600 Index added 0.8 percent.
The agreement was “better than expected,” said Geoff Kendrick, head of European currency strategy at Nomura International Plc in London. “It looks like you’ll get a bit of a relief rally and euro-Swiss goes higher.”
The euro was weaker against the dollar as German business confidence declined more than economists forecast to the lowest level in nine months in July.
The Ifo institute’s business climate index, based on a survey of 7,000 executives, declined to 112.9 from 114.5 in June. Economists forecast a drop to 113.7.
Fitch will place the Greek sovereign rating into 'Restricted Default' and assign 'Default' ratings to the affected Greek government bonds on the date that the offer period for the proposed debt exchange closes.
The dollar also rose against the yen following reports the White House is cutting a deal with House Republicans to boost the U.S. debt ceiling and reduce deficits by about $3 trillion over 10 years without immediate revenue increases.