Euro Saved by Smooth Italy Debt Auction

The euro held its ground against the dollar and yen on Thursday, with euro bulls taking heart after a relatively smooth auction of Italian government bonds helped ease worries about the country’s inconclusive election.

The common currency traded at $1.3134, having bounced from an eight-week trough of $1.3018 plumbed earlier in the week. Against the yen, the euro fetched 121.14, up from a five-week low of 120.20.

Euro longs were shaken on Monday after the Feb. 24-25 election gave none of Italy’s political parties a parliamentary majority. The outcome raised the risk of prolonged uncertainty in the euro zone’s third largest-economy and a renewal of the region’s financial crisis.


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