Traders 'increasingly concerned over euro future'
The euro has gained 0.1 per cent in value against the US dollar this morning (April 12th) to $1.3120, despite increasing Italian three-year borrowing costs, Reuters reports.
Traders are becoming increasingly concerned over the likely future stability of the European single currency, especially given the latest rise in borrowing costs being seen in Italy.
It now appears likely the euro will struggle against growth-driven currencies over the short term amid fears that contagion could be spreading from the Spanish economy to other eurozone nations.
"Should the Italian auction disappoint, we could see the euro reverse some of its gains," Ankita Dudani, G-10 currency strategist at RBS Global Banking, told the news provider.
However, she added that the bond sale is expected to go through without too much hassle for investors.
Earlier this month, the Japanese yen highlighted its ongoing strength against the single currency with a 0.4 per cent rise on April 2nd to 82.59 yen, following the announcement that further monetary easing in Japan is unlikely to take place in the near future.Posted by Greg Secker
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