Central banks on Monday announced more co-ordinated action to combat the credit crisis and boost dollar liquidity. The Fed will more than double swap lines with the ECB and other central banks from $290bn to $620bn. It will also expand its Term Auction Facilities programme.

The move follows earlier announcements from Ben Bernanke, the Fed chairman, that he was confident that the proposed $700bn Wall Street rescue plan would help restore credit flows. The breakthrough agreement reached at the weekend paves the way for congressional approval as early as Monday.