The shared currency was supported as investors speculated a weak bond sale by Spain would add to pressure for the nation to request a bailout. South Africa’s rand rallied for a third day as investors bought the nations assets before an anticipated interest-rate cut. Canada’s dollar rallied after retail sales rose at the fastest pace in nine months.
“There has been speculation that an interest-rate cut would be coming in October as the ECB tries to ease policy further,” said Eimear Daly, a currency market analyst at Monex Europe Ltd. in London. “The market wants Spain to ask for a bailout. The market will start to test Spain and force them in to a bailout, which is ultimately euro positive.”
The euro gained 0.1 percent to $1.2945 at 9:20 a.m. New York time, after declining to $1.2887, the lowest since Sept. 13. It was little changed at 100.66 yen. The Japanese currency rose 0.1 percent to 77.77 per dollar, after earlier touching 77.66, the strongest level since Sept. 14.
The ECB cut the main refinancing rate in July to a record low of 0.75 percent and economists forecast another reduction by the end of the year, according to a Bloomberg News survey.
The yield on three-month Spanish debt auctioned today was 1.203 percent, compared with 0.946 percent at a previous sale on Aug. 28.
Source: Bloomberg
Reymount Investment Products & Services:
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.