Investing.com - The euro rose against the dollar on Friday after sentiments began to build that Spain is growing closer to formally requesting a bailout.
In U.S. trading on Friday, was trading up 0.19% at 1.2953, up from a session low of 1.2921, and off from a high of 1.2992.
The pair was likely to find near-term support at 1.2921, the earlier low, and resistance at 1.2992, the earlier high.
Market talk suggesting that Spain may be closer to requesting a bailout sent the pair gaining on Friday.
Earlier this week, Standard & Poor's said it lowered Spain's long-term credit rating to 'BBB-' from 'BBB+' and cut its short-term credit rating to 'A-3' from 'A-2'.
The ratings agency said Spain's deepening economic recession is limiting the Spanish government's policy options and added that rising unemployment and spending constraints are likely to fuel social discontent and contribute to friction between Spain's central and regional governments.
"In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining," Standard & Poor's said in a statement.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt in the secondary market, which would lower borrowing costs in the crisis-weary country.
Elsewhere, industrial production in the eurozone rose unexpectedly in August, rising 0.6% after an increase of 0.6% the previous month.
Analysts had expected industrial production to contract by 0.4% in August.
Meanwhile in the U.S., the University of Michigan/Reuters consumer sentiment index for October rose unexpectedly.
In a report, the University of Michigan said that consumer sentiment rose to a seasonally adjusted 83.1 from 78.3 in September.
Analysts had expected consumer sentiment to fall to 78.0.
Also in the U.S., producer price inflation rose more than expected in September, official data showed on Friday.
In a report, the Department of Labor said that it producer price index rose a seasonally adjusted 1.1% from 1.7% in August.
Analysts had expected the figure to rise 0.7% last month.
The euro, meanwhile, was up slightly against the pound and up against the yen, with trading up 0.01% at 0.8058, and trading up 0.28% at 101.55.