Investing.com - The euro was hovering close to a 22-month low against the U.S. dollar on Tuesday, as concerns over rising Spanish borrowing costs offset easing worries over a Greek exit from the euro zone.
EUR/USD hit 1.2510 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.2535, slipping 0.05%.
The pair was likely to find short-term support at 1.2495, Friday’s low and a 22-month low and resistance at 1.2623, Monday’s high.
The yield on Spain’s 10-year bond rose to 6.47% on Monday, the highest level this year after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The announcement fuelled fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Speaking Monday, Spanish Prime Minister Mariano Rajoy said Spain was “finding it very difficult to finance itself”, but ruled out the possibility that the country will need a bailout.
Meanwhile, concerns over the risk of a Greek exit from the euro area subsided after weekend opinion polls showed increasing support for pro-bailout party New Democracy ahead of general elections due to be held on June 17.
The euro was fractionally lower against the pound and the yen, with EUR/GBP inching down 0.06% to hit 0.7993 and EUR/JPY dipping 0.01% to hit 99.64.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to release reports on house price inflation and consumer confidence.
EUR/USD hit 1.2510 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.2535, slipping 0.05%.
The pair was likely to find short-term support at 1.2495, Friday’s low and a 22-month low and resistance at 1.2623, Monday’s high.
The yield on Spain’s 10-year bond rose to 6.47% on Monday, the highest level this year after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The announcement fuelled fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Speaking Monday, Spanish Prime Minister Mariano Rajoy said Spain was “finding it very difficult to finance itself”, but ruled out the possibility that the country will need a bailout.
Meanwhile, concerns over the risk of a Greek exit from the euro area subsided after weekend opinion polls showed increasing support for pro-bailout party New Democracy ahead of general elections due to be held on June 17.
The euro was fractionally lower against the pound and the yen, with EUR/GBP inching down 0.06% to hit 0.7993 and EUR/JPY dipping 0.01% to hit 99.64.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to release reports on house price inflation and consumer confidence.