Investing.com - The euro fell to multi-year lows against the other major currencies on Monday, amid mounting fears that Spain will be the next euro zone member to require a full scale bailout and fresh concerns over a possible Greek exit from the euro zone.
During European late morning trade, the euro was hovering close to a two-year low against the U.S. dollar, with EUR/USD down 0.31% to 1.2117.
The yield on Spanish 10-year bonds rose to a record 7.53% on Monday, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full bailout after the state of Murcia followed Valencia in requesting financial aid from Madrid over the weekend.
The spike in borrowing costs came despite euro zone finance ministers approving a package of as much as EUR100 billion to bailout Spain’s banks on Friday.
Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout ahead of a meeting with the Troika on Tuesday.
The euro eased back from a three-and-a-half year low against the pound, with EUR/GBP easing up 0.21% to 0.7800, but remained close to its lowest level in 12 years against the yen, with EUR/JPY down 0.75% to trade at 94.69.
Earlier in the day, Japanese Finance Minister Jun Azumi reiterated that Tokyo was ready to take decisive steps against speculative moves or excessive volatility in the yen, amid concerns over the impact on the country’s largely export driven economy from the stronger currency.
The euro was little changed against the Swiss franc, with EUR/CHF dipping 0.01% to 1.2009.
The euro pulled back from record lows against the Australian and New Zealand dollars as traders sold the currency to lock in gains, with EUR/AUD up 0.55% to 1.1779, off an earlier low of 1.1698 and EUR/NZD up 0.69% to trade at 1.5307, up from a session low of 1.5171.
The euro also eased back from an all-time low against the Canadian dollar, with EUR/CAD inching up 0.03% to 1.2316.
The Australian dollar was little changed after official data showed that domestic producer price inflation rose 0.5% in June, outstripping expectations for a 0.3% increase, following a 0.3% drop in May.
Neither the euro zone nor the U.S were to release any significant economic indicators on Monday, so markets looked set to remain focused on developments in Europe.
During European late morning trade, the euro was hovering close to a two-year low against the U.S. dollar, with EUR/USD down 0.31% to 1.2117.
The yield on Spanish 10-year bonds rose to a record 7.53% on Monday, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full bailout after the state of Murcia followed Valencia in requesting financial aid from Madrid over the weekend.
The spike in borrowing costs came despite euro zone finance ministers approving a package of as much as EUR100 billion to bailout Spain’s banks on Friday.
Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout ahead of a meeting with the Troika on Tuesday.
The euro eased back from a three-and-a-half year low against the pound, with EUR/GBP easing up 0.21% to 0.7800, but remained close to its lowest level in 12 years against the yen, with EUR/JPY down 0.75% to trade at 94.69.
Earlier in the day, Japanese Finance Minister Jun Azumi reiterated that Tokyo was ready to take decisive steps against speculative moves or excessive volatility in the yen, amid concerns over the impact on the country’s largely export driven economy from the stronger currency.
The euro was little changed against the Swiss franc, with EUR/CHF dipping 0.01% to 1.2009.
The euro pulled back from record lows against the Australian and New Zealand dollars as traders sold the currency to lock in gains, with EUR/AUD up 0.55% to 1.1779, off an earlier low of 1.1698 and EUR/NZD up 0.69% to trade at 1.5307, up from a session low of 1.5171.
The euro also eased back from an all-time low against the Canadian dollar, with EUR/CAD inching up 0.03% to 1.2316.
The Australian dollar was little changed after official data showed that domestic producer price inflation rose 0.5% in June, outstripping expectations for a 0.3% increase, following a 0.3% drop in May.
Neither the euro zone nor the U.S were to release any significant economic indicators on Monday, so markets looked set to remain focused on developments in Europe.