Euro Pushes to within reach of 1.34 as Spain’s Borrowing Costs Decline

The euro approached a 10-month high against the dollar after Spain’s borrowing costs fell at a 4.5 billion-euro ($6 billion) sale of bonds, underscoring increased confidence in European debt markets.

The shared currency rose versus all of its 16 major peers, while the yen slid to the weakest since 2010 against the dollar as Nikkei newspaper said the Bank of Japan (8301) is preparing to ease policy next week. The Swiss franc fell to the lowest versus the euro since the nation’s central bank imposed an exchange-rate cap in September 2011. Mexico’s peso advanced as economic data beat forecasts in the U.S., the nation’s biggest trade partner.

“We’re in a real grinding risk-on environment,” Dan Dorrow, head of research in Stamford, Connecticut, at Faros Trading LLC, said in a telephone interview. “The tail risks in the euro zone seem to be mitigated because bond sales are doing well for them. There’s more confidence in the market.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.