Spain bailout hopes lift euro |
| Financial Times - Sep 21, 2012 |
The US dollar fell back on Friday as risk appetite returned to the currencies market amid optimism that Spain could soon request a bailout package.
The euro, Australian dollar and UK pound rose following an FT report that Spanish and EU officials were in talks over economic reforms to be unveiled next week.
The Australian dollar was one of the biggest gainers, rising 0.2 per cent to a session high of $1.0458 against the US dollar. The pound rose 0.1 per cent to $1.6236 while the euro rose 0.2 per cent to $1.2987.
“News reports that Spain is negotiating the terms of a bailout behind the scenes are likely to provide renewed support for EU asset markets and the euro,” said analysts at Morgan Stanley.
However, the single currency was also contending with a downward revision to Italian economic growth after the Italian government cut its growth forecast from minus 1.2 per cent to minus 2.4 per cent this year.
Michael Sneyd, analyst at BNP Paribas, said: “Italy will remain out of the limelight unless political tensions arise, which may occur ahead of the general election, scheduled for spring 2013.
Read Full Article from Financial Times
- Posted: 2012-09-21 13:53:42
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