Investing.com - The euro remained close to the day’s highs against its major counterparts on Monday, boosted by hopes for an agreement by European leaders on a pact to arrest the spread of the region’s debt crisis and despite rising Belgian borrowing costs.
During European early afternoon trade, the euro was sharply higher against the U.S. dollar, with EUR/USD rising 0.99% to hit 1.3368.
Belgium sold EUR2 billion of 10-year bonds in the country’s first debt auction since ratings agency Standard & Poor's downgraded the country’s rating by one notch on Friday.
Following the auction, Belgium's benchmark 10-year yield climbed to its highest level since 2000, rising close to 6%.
The euro remained supported by speculation European Union leaders are moving closer to agreeing on a fiscal pact to halt the spread of the region’s debt crisis.
The pact, if agreed, would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
Earlier in the day, Moody's Investors Service warned that the rapid escalation of the sovereign and banking crisis in the single currency bloc was threatening the credit ratings of all European government bonds.
The euro was also higher against the pound, with EUR/GBP easing up 0.10% to hit 0.8582.
In the U.K., an industry report showed that retail sale volumes declined significantly more-than-expected in November, falling at the fastest rate since March 2009.
The single currency was sharply higher against the yen but dipped against the Swiss franc, with EUR/JPY surging 0.93% to hit 103.86 and EUR/CHF slipping 0.11% to hit 1.2299.
Earlier Monday, the governor of the Bank of Japan warned that the outlook for the country's economy remained clouded by the ongoing debt crisis in the euro zone and the strong yen, signaling the central bank's readiness to boost monetary stimulus if necessary.
Elsewhere, the euro was lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD shedding 0.36% to hit 1.3811, EUR/AUD tumbling 1.31% to hit 1.3452 and EUR/NZD falling 1.02% to hit 1.7687.
Later in the day, Germany was to release a report on consumer climate, while the U.S. was to publish government data on new home sales.
During European early afternoon trade, the euro was sharply higher against the U.S. dollar, with EUR/USD rising 0.99% to hit 1.3368.
Belgium sold EUR2 billion of 10-year bonds in the country’s first debt auction since ratings agency Standard & Poor's downgraded the country’s rating by one notch on Friday.
Following the auction, Belgium's benchmark 10-year yield climbed to its highest level since 2000, rising close to 6%.
The euro remained supported by speculation European Union leaders are moving closer to agreeing on a fiscal pact to halt the spread of the region’s debt crisis.
The pact, if agreed, would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
Earlier in the day, Moody's Investors Service warned that the rapid escalation of the sovereign and banking crisis in the single currency bloc was threatening the credit ratings of all European government bonds.
The euro was also higher against the pound, with EUR/GBP easing up 0.10% to hit 0.8582.
In the U.K., an industry report showed that retail sale volumes declined significantly more-than-expected in November, falling at the fastest rate since March 2009.
The single currency was sharply higher against the yen but dipped against the Swiss franc, with EUR/JPY surging 0.93% to hit 103.86 and EUR/CHF slipping 0.11% to hit 1.2299.
Earlier Monday, the governor of the Bank of Japan warned that the outlook for the country's economy remained clouded by the ongoing debt crisis in the euro zone and the strong yen, signaling the central bank's readiness to boost monetary stimulus if necessary.
Elsewhere, the euro was lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD shedding 0.36% to hit 1.3811, EUR/AUD tumbling 1.31% to hit 1.3452 and EUR/NZD falling 1.02% to hit 1.7687.
Later in the day, Germany was to release a report on consumer climate, while the U.S. was to publish government data on new home sales.