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Euro rises as concern cools

By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- The euro pared gains against the dollar Thursday, as debt concerns sparked in the previous session abated after Spain held a strong bond auction.

What prices are doing: The dollar fell 0.2% against the euro to $1.2389, and it also lost about 0.2% on the British pound to $1.4818.

dollar_vs_euro.png
Click the chart for current foreign exchange rates.

The greenback dropped 0.5% against the Japanese yen at ¥91.98.

What's moving the market: On Wednesday, a report in Spanish newspaper El Economista that said the International Monetary Fund, the European Union and the U.S. Treasury are preparing a $308 billion bailout for debt-strapped Spain.

The rumor refueled worries about Europe's fiscal crisis, but the report was later denied.

What analysts are saying: Investors were cheered further when Spain announced that its sale of 10-year and 30-year bonds had been met with ample demand.

But the sovereign debt problems facing many European economies remains a concern, notes Camilla Sutton, a currency strategist at Scotia Capital.

"The Spanish debt auction was strong, easing some fears," she said. "However we still find the elevated Southern European yields concerning." To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed4.04%4.00%
15 yr fixed3.19%3.15%
5/1 ARM3.31%3.28%
30 yr refi4.08%4.04%
15 yr refi3.21%3.16%
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Index Last Change % Change
Dow 19,786.56 -99.17 -0.50%
Nasdaq 5,531.24 -42.88 -0.77%
S&P 500 2,264.10 -10.54 -0.46%
Treasuries 2.33 -0.05 -2.06%
Data as of 2:56pm ET
Company Price Change % Change
Bank of America Corp... 22.06 -0.95 -4.11%
Reynolds American In... 57.75 1.78 3.18%
Chesapeake Energy Co... 7.02 0.10 1.45%
Ford Motor Co 12.58 -0.05 -0.42%
Apple Inc 119.67 0.63 0.53%
Data as of 2:41pm ET

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