The euro declined for a second day against the dollar after Spainâ€™s Prime Minister Mariano Rajoy said his government would delay deciding whether to seek a sovereign bailout until the aid conditions are clear.
Europeâ€™s shared currency approached an eight-week high earlier as Chinese Premier Wen Jiabao pledged to consider European bond purchases and Italyâ€™s borrowing costs fell at an auction. The euro declined versus the yen as Rajoy and French President Francois Hollande pressed the European Central Bank to implement decisions from a June summit to reduce borrowing costs. Norwayâ€™s krone rose versus most major peers even after a policy maker signaled the central bank wonâ€™t accept persistent currency strength.
â€œSpain has not requested help, which was something the market had hoped they would do to put the country on a better path to dealing with its debt crisis,â€ Joe Manimbo, a market analyst in Washington at Western Union Business Solutions, a unit of Western Union Co. (WU), said in a telephone interview. â€œThis does little to inspire investor confidence. As a result, theyâ€™re starting to lighten up on some of their pro-euro bets.â€
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