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Tue 11 Nov 2010Bailout fails to calm markets as costs rise in Spain and Portugal

A RENEWED wave of volatility swept through European markets as the €85 billion EU-IMF bailout of Ireland failed to dampen anxiety that Portugal and Spain may need external aid.

As the euro fell to its lowest level for two months against the dollar, pressure on heavily indebted counties such as Italy and Belgium was seen as evidence that the Irish rescue has failed to avert contagion in the euro zone.

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