| CATEGORY: FX |
Thu 26 Jul 2012
|
LONDON (SHARECAST) - The euro snapped its recent losing streak against the dollar on Wednesday on fresh optimism about the Eurozone.
Market confidence perked up after a European Central Bank official said the European bailout fund could be given a banking licence, which would help boost loans to countries such as Spain and Italy.
The prospect of increased firing power to tackle the debt crisis sent the euro up to $1.2152 versus $1.2066 the previous session.
Against the yen, the euro rallied to an intra-day high of ¥95.20, dusting off a 12-year low of ¥94.11 earlier in the week.
The dollar index, which measures the US currency against a basket of six others, came off the previous session's 11-year high to trade at 83.5734 from 84.009 the day before.
The dollar's safe have status had been in demand earlier in the week following reports that Greece will require additional debt restructuring and was not expected to be able to repay its debt. Sentiment had also been hit by fears about Spain's borrowing costs and concern the country will need a sovereign bailout.
Yields on Spanish debt have risen sharply since the Valencia region said it would need financial help from Madrid.
Meanwhile the greenback was little changed against the yen at ¥78.12 from ¥78.19 the previous session.
Sterling fell on Wednesday after the latest figures showed Britain is not in recovery but has instead moved deeper into recession.
Gross domestic product fell by 0.7% in the three months to June, its sharpest drop since the peak of financial crisis at the start of 2009. Analysts had expected a decline of around 0.2%.
CJ
|
|
|
|
 |
|
