Date: Monday 11 Jun 2012
The euro was down against the dollar on Friday as markets mulled Spain's three-notch credit downgrade and as expectations of a possible rescue package increase.
The euro traded below $1.25 for most of the session before recovering to $1.2512 on hopes that Spain may ask for rescue deal for its banks. The single currency fetched $1.2571 on Thursday and managed a weekly gain after five consecutive weeks of declines.
All eyes were on Spain on Friday following rating agency Fitch's credit rating downgrade, with a negative outlook. Fitch warned that it could take up to €100bn to rescue the nation's banks. Rumours circulated that the Spanish government could request financial help as soon as the weekend.
Risk currencies also came under pressure after US Federal Reserve Chairman Ben Bernanke failed to offer any hints of monetary stimulus in the short term. Markets had pinned high hopes for some indication of stimulus at his address to Congress on Thursday.
The dollar index, which measures the US currency against a basket of six others, advanced to 82.439 from 82.241 late Thursday. On the week the index was down 0.5%.
Against the yen, traded at ¥79.49 versus ¥79.62 on Thursday and over the week the dollar rose around 1% against the Japanese currency.
Sterling fell against the broadly stronger dollar but made headway against the euro on Friday as investors fret about global growth.
The pound was off 0.7% against the dollar at around $1.5415 as nervous markets gear up for Greek elections, a possible Spanish bailout and fears that the UK is struggling with a deeper than expected recession.
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange Market.
or share it with one of these popular networks:
You are here: news