Dollar rises on Spain concerns
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E-mail Xinhua, June 19, 2012
The U.S. dollar rose against major currencies in late New York trading on Monday as the yields of Spain's government bonds rose on debt concerns.
Greece's pro-bailout New Democracy party gained most votes in Sunday elections, relieving investors' concerns about the country' s possible exit from the euro zone. Nonetheless, the euro dropped on Monday as investors' focus shifted to Spain, whose debt problems deteriorated.
The yield of Spain's government bonds climbed to above 7 percent, which is seen as unsustainable.
"The fact that Spanish yields are back above 7 percent today is mostly the result of uncertainties connected with the combined debts of the Spanish sovereign, the regions and the country's banking sector," said Jane Foley, senior currency strategist at Rabobank International.
With no major U.S. economic reports out on Monday, the dollar benefited from weak euro as the dollar index gained 0.249 to 81. 854.
In late Monday trading, the dollar bought 79.13 Japanese yen, compared with 78.71 from late Friday. The euro dropped to 1.2580 dollars from 1.2637.
The British pound also fell to 1.5665 dollars from 1.5678. The dollar rose from 0.9504 Swiss francs to 0.9546, and went up to 1. 0247 Canadian dollars from 1.0232.
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