BLBG:Euro Advances as Spain Sells Government Bonds While Yen Weakens
The euro advanced toward a 10-month high against the dollar as Spain’s borrowing costs fell at a 4.5 billion-euro ($6 billion) sale of bonds, underscoring demand for the region’s assets.
Europe’s shared currency climbed against all 16 of its major peers amid signs investors are returning to markets they deserted in 2012, with foreign investors buying more than 60 percent of the debt Italy sold two days ago. The yen fell after Economy Minister Akira Amari said his comments earlier this week that excessive weakening of the yen was harmful had been misinterpreted. Australia’s dollar slid after data showed the nation lost jobs in December. Switzerland’s franc weakened.
“There’s a seal of approval from global investors that’s supporting the euro,” said Peter Frank, global head of foreign- exchange strategy in London at Banco Bilbao Vizcaya Argentaria SA. (BBVA) “We are looking for a gradual further weakening of the yen, the new government are being really aggressive and it’s hard to see their mission to weaken the yen not be successful.”
The euro strengthened 0.5 percent to $1.3357 at 10:19 a.m. London time. It climbed to $1.3404 on Jan. 14, the strongest level since Feb. 29, 2012. Europe’s shared currency rose 1.4 percent to 119.11 yen. Japan’s currency declined 0.9 percent to 89.18 per dollar. The Swiss franc declined as much as 0.7 percent to 1.2457 per euro, the weakest since October 2011.
The Australian dollar weakened 0.5 percent to $1.0518.
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
