Reuters Tokyo – The yen dipped against higher-yielding currencies on Monday while the Australian dollar surged as leaders from Europe to the United States rushed out plans to shore up banks and stem the panic gripping investors.

After many stock markets suffered their worst weekly losses ever last week, leaders from Group of Seven industrialised nations set out a plan of action.

European officials offered to guarantee some bank debt and inject public funds into individual banks if necessary.

The United States said it would take stakes in banks in a first such move since the Great Depression, Australia guaranteed bank deposits and Britain was set to pump more than 40 billion pounds into its four biggest banks.

The flurry of initiatives to contain the worst financial crisis since the 1930s increased investor appetite for risk, though analysts were uncertain whether the improving mood would last very long.

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