Currency Exchange UK

 

Euro Rises VS Currency Basket

Euro Rises VS Currency Basket

The euro rose on Thursday against a basket of currency majors after a successful sale of Spanish government bonds increased investor appetite.

Spain put €3billion of 15-year bonds up for sale and bids exceeded 2.57 times the offered amount. 

This was already an improvement on the last bond sale in April, and gave international investors hope that the so-called PIGS (Portugal Italy Greece and Spain) nations are more able to deal with their deficit than previously thought.

By 11AM GMT, the euro had risen 0.4 per cent against the dollar at $1.2790.  Meanwhile the yen also strengthened against the greenback, rising to 88.02 per dollar.

The dollar took a knock from a report by Goldman Sachs Group which showed it had lowered its forecast against the euro and the yen for the year ahead. 

Slow US economic growth – this view backed by the US Federal Reserve – and a better-than-expected euro zone economy means that the dollar will have a tough time.