IBT:Euro Falls as Italian Bond Sales Feature Soaring Interest Rates
The euro fell broadly on Tuesday after a report cast doubt on the possibility that China would support Italy by buying its government debt, while an auction of Italian bonds showed Rome paying a high price to borrow from the market.
The euro hit a session low of $1.3557, after Market News International reported Beijing may not buy Italian debt. Earlier in the day, it climbed to $1.3696 after the Financial Times had reported that Italy had asked China to buy its bonds.
The single currency fell 1 percent on the day to 104.41 yen. On Monday it had fallen as low as $1.3495, its weakest since February, and a 10-year trough of 103.90 yen.
On Tuesday, the euro recovered from the day's low only to come under more selling pressure after Italy paid higher borrowing costs to sell a new five-year bond.
