Euro Falls Near 2-Year Lows
May 29, 2012 10:12 PM EST
(Reuters) - The euro slipped against the dollar Tuesday, edging closer to two-year lows as investors and speculators sold the common currency on persistent worries over Spain's escalating borrowing costs and its weakening banking sector.
Worries about the cost of shoring up Spain's banking system kept Spanish debt yields elevated while the gap between them and German 10-year yields remained near euro era highs, as the risk grew that Spain may be forced to seek an international bailout.
The euro traded at $1.2530, off a day high of $1.2575 as demand from corporates and Middle East names faded.
Having failed to clear resistance at previous support around $1.2625 for three days in a row, the euro was vulnerable to another test of Friday's low of $1.2495, which marked its weakest level since July 2010. Bids just below $1.25 could offer some support, though further losses could see it drop towards $1.2450, where traders reported stop-loss sell orders.
Most Popular Slideshows
- G20 Summit Awkward Moments: Putin Yawns, Mystery Bubbles Appear, F18 Drama Ensues
- Real Life ‘Frozen’: Snow Overwhelms The US, Kills 7; More To Come (Pictures)
- Angelina Jolie, Brad Pitt in Sydney for ‘Unbroken’ Red Carpet Premiere [PHOTOS]
- ‘The Walking Dead’ Season 5, Episode 8 Spoilers: Daryl Dixon Is Set To Burn The Place Down in ‘Coda’
Join the Conversation
- Walmart Early Price Matching Special Event On Nov. 21, 2014 Matches Its Competitors' Black Friday 2014 Prices And Includes Exclusive Deals For Samsung LED HDTVs And iPad Air 2 [WATCH VIDEO]
- US Plane Flying Over Russian Skies Spotted; Vladimir Putin Ready For 'Practical Cooperation' With US
- Microsoft Band Wearable Gadget At $199 Is A Sell-Out
- 6 Big Reasons iPhone 6 Plus is Must-Have Black Friday, Christmas 2014 Buy
- Nexus 6 Release Date And Price Under AT&T, T-Mobile And Sprint Listed
- NATO To Russia: 'Pull Back Your Troops'
- Alleged 'Microsoft Lumia 1030' Front Panel Leaked With Capacitive Buttons; 'Xbox One' Owners To Get Free Goodies On Anniversary