Dollar mixed on European concerns
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E-mail Xinhua, June 12, 2012
The U.S. dollar traded mixed against major currencies in late New York trading on Monday as the euro went down on lingering worries about Greece and Spain.
Spain would ask the European Union for as much as 100 billion euros (about 125 billion U.S. dollars) in loans to recapitalize its banking sector. The news, however, slightly eased investors' concerns over euro zone debt crisis as the bailout lacked details.
"The euro is struggling to hold onto its initial gains because the Spanish bailout leaves many unanswered questions such as which bondholders will be subordinated," said Kathy Lien, director of currency research at GFT Forex, an online currency-trading firm in New York.
Meanwhile, concerns lingered over Greece's second round of elections on June 17, seen as a referendum on the debt-ridden country's future in the euro zone.
The euro slipped against the dollar on Monday, pressured by the worries about the Spain's banking sector and possible Greek exit from the euro zone.
With no major economic report due out on Monday, the dollar traded mixed against the other major currencies amid ongoing concerns about the European debt crisis and expectations of further easing monetary easing measures by the U.S. Federal Reserve.
In late Monday trading, the dollar bought 79.44 Japanese yen, compared with 79.48 from late Friday. The euro fell to 1.2498 dollars from 1.2507.
The British pound rose to 1.5498 dollars from 1.5462. The dollar rose from 0.9603 Swiss francs to 0.9609, and also rose to 1. 0305 Canadian dollars from 1.0293.
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