Rey Nuevo Posted July 21, 2012 Report Share Posted July 21, 2012 FXstreet.com (Córdoba) - The euro weakened broadly on Friday, falling to fresh 2-year lows against the dollar after Spain's Valencia region asked for financial aid from the central government, fueling fears the country will need a full bailout. EUR/USD dropped to its lowest rate since June 14, 2010 at 1.2143 as Spanish 10-year yields soared to a fresh euro-era high of 7.32% and the spread over the German bunds topped 600 bp. The Spanish stock index Ibex-35 closed 5.8% down. Also on Friday, the rating agency Egan-Jones cut the Iberian country rating for the fourth time in nearly 3 months to CC+ from CCC+. Against this backdrop, the Eurogroup formal approval of Spanish bank bailout failed to offset the gloom. Meanwhile, the shared-currency also hit a 3 ¾-year low versus the pound, and a 12-year low against the yen. The euro also printed new record lows versus the AUD, the CAD and the NZD on Friday and hit multi-month lows against the NOK and SEK. EUR/USD is currently quoting at the 1.2150/60 area, recording a 1.0% loss on the day and a nearly 0.8% weekly decline. It was the third weekly decline in a row for the pair. cokhisaa 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.