Breaking News

Forex - U.S. dollar trades lower on Spanish bailout speculation

ForexSep 21, 2012 07:43AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - The greenback traded lower against most of its major counterparts Friday as unsubstantiated reports of an imminent Spanish bailout by the European Central Bank helped lift sentiment for the risk on trade.

During European trade, the dollar eased lower against the euro, with EUR/USD climbing 0.03% to 1.2974. The euro turned bullish after a news report that European Union authorities are  covertly working  toward a Spanish rescue program and unlimited bond buying by the European Central Bank, to be revealed next week.

Meetings between the Spanish government and the European Commission were said to be  discussing measures that would be demanded by international lenders as part of a new rescue program, ensuring they are in place before a bailout is formally requested.

According to the newspaper, negotiations have been conducted directly with Spain's Finance Minister Luis de Guindos and the plan will focus on structural reforms, rather than new taxes and spending cuts. 

The greenback was also lower against the pound, with GBP/USD advancing 0.32% to 1.6267.

Government data revealed  U.K. public sector net borrowing rose to GBP12.4 billion in August, below the expected increase to GBP13.3 billion, following a reading of minus GBP1.9 billion the previous month.

Elsewhere, the greenback was steady against the yen, with USD/JPY dropping 0.06% to hit 78.20, and lower against the Swiss franc, with USD/CHF falling 0.06% to trade at 0.9326.

In its quarterly bulletin, the Swiss National Bank reported it is leaving the minimum exchange rate unchanged at CHF1.20 per euro, and will continue to enforce it with the utmost determination. 

In addition, the greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD falling 0.30% to 0.9741, AUD/USD rallying 0.73% to 1.0512 and NZD/USD climbing 0.44% to hit 0.8326.

Earlier in the day, the Conference Board said that its leading index of economic indicators for Australia was flat in July, following an upwardly revised 0.5% rise the previous month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dropped 0.13%, to trade at 79.39.

Traders were experiencing light volumes Friday as there are no significant economic events scheduled for the session.


Forex - U.S. dollar trades lower on Spanish bailout speculation

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email