Euro Hit Three-Week Low Against the Dollar

Euro Hit Three-Week Low Against the Dollar

On Thursday, the euro were at three-week low against the dollar and the bonds slightly higher as Spain’s Debt weight sparked worries of further problems for euro zone economies and maintain appetite for riskier assets.

Global stocks slipped, while energy and gold prices rose.

A poor Spanish bond auction on Wednesday added jitters the effect of the European Central Bank’s one trillion euro cheap injection in three-year funds into the banking system could be coming to an abrupt halt.

Spanish 10-year government bond results climbed as high as 5.86 percent on Thursday, which is dragging Italian rates in their behind as investors fled to the relative safety of German and U.S. debt.

Dan Dorrow, director of research at Faros Trading, in Stamford, Connecticut, said:” “The euro zone firewall set up is not quite to save Spain, it because If the ECB were the Fed right now they would be easing the quantitive or lowering rates, but the ECB still more passive.”

The euro was last drop 0.6 percent at $1.3064 against the dollar, having at three-week low level of $1.3033. and also the lowest in four weeks against the yen at 106.86 yen before back to trade at 107.58 yen,remain decline 0.7 percent..