Euro Hits 3-Week low Due to Turmoil With Spanish Bonds

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The 17-nation currency continues its downward spiral as the U.S Dollar made further gains versus the Euro and other Major counterparts.

Turmoil in the Spanish Bond's Market was heavily responsible for adding extra pressure on the euro as it traded down to a three -week low. The euro dropped to the $1,3063 level from $1,3139, the rate it reached during Wednesday's trading.

The latest rise in Spanish and Italian bond yields has put heavy pressure on the single currency,after the euro had rallied on and off since the start of the year after the European Central Bank proposed huge long-term re-financing which eased concern of the debt crisis.

Yields on Spain's 10-year government bonds was at the highest rate since December after appreciating to 5.78 percent. whilst Italy's 10-year yields climbed as high as 5.54 percent, reaching its highest point since February.

Elsewhere the Greenback made further gains during Thursday's trading as a result of the U.S Initial Jobless Claims showed a dip to 357,000, positive news for dollar. The Non-farm Payrolls report to be published tomorrow could stir up the currency and commodity markets if the report will show surprising results.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , bonds





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