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.
Join the Conversation
- 5 Proofs Russia is Geared-Up for Shooting War with U.S. and Can Win Future Nuclear Showdown
- Target’s ‘Surprise Doorbusters’ Black Friday 2014 Deals On TV Sets, Entertainment Centres, DVD Players And More
- IKEA Black Friday 2014 Ad Includes Discounts On Home Furnishings, Appliances, Kitchen Designs, Beds, Sofas, Mattresses And Toys
- T-Mobile’s Black Friday 2014 Deals On Apple iPhone 6, Samsung Galaxy Note 4/Edge, Nexus 6, HTC One M8, LG G3, iPad Air 2 And Mini 3
- ISIS Drug Transit From Afghanistan To Europe Confirmed By Russia: Money Goes Into Terror Funding And In New Recruitments
- Bill Clinton At It Again, Caught By Camera In Jerusalem Peeking At Woman’s Breast
- Walmart Canada Black Friday 2014 Ad For Nov. 28, 2014 Up To Dec. 1, 2014 Includes Savings On The iPad Mini 16GB And The Beats Solo HD Drenched Headphones