The U.S. Dollar fell against most major currencies in overnight trading as investor appetite for risk increased while tensions over Irish debt issues eased. Pressure increased on the Dollar amid optimism that a bailout for Ireland will prevent contagion across the Euro region’s debt markets.

Talk is circulating that Ireland will ask for a “substantial” bailout from the European Union and International Monetary Fund. This helped strengthen the Euro as well as global equity markets. Commodity currencies also rose amid strong demand for risky assets.

Rumors, that a support package is in place has definitely led to a calmer trade overnight. Risk sentiment is improving as traders pare short positions in the Euro and the risk currencies – Australian Dollar, New Zealand Dollar and Canadian Dollar.