Forexpros - The U.S. dollar was broadly lower against its major counterparts on Friday, as reports of an imminent bailout for Spain boosted risk sentiment, despite Thursday's string of disappointing economic reports. During European morning trade, the dollar was sharply lower against the euro, with EUR/USD climbing 0.50% to 1.3034. The single currency found support after the Financial Times reported earlier that European Union authorities are working behind the scenes to pave the way for a new Spanish rescue program and unlimited bond buying by the European Central Bank, by helping Madrid craft an economic reform program that will be unveiled next week. Talks between the Spanish government and the European Commission were said to be focusing on 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 0.52% to 1.6299. Official data showed that U.K. public sector net borrowing rose by GBP12.4 billion in August, below the expected GBP13.3 billion rise, following a decline of GBP1.9 billion the previous month. Elsewhere, the greenback was steady against the yen, with USD/JPY easing up 0.01% to hit 78.25, and lower against the Swiss franc, with USD/CHF dropping 0.48% to trade at 0.9285. In its quarterly bulletin, the Swiss National Bank said that 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 0.45%, to trade at 79.14. Trading volumes were expected to remain light on Friday, as no major economic indicators were to be released later in the day.

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