Dollar rises on Spain concerns
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E-mail Xinhua, June 26, 2012
The U.S. dollar rose against most major currencies in late New York trading on Monday after Spain officially requested bailout for its struggling banks. Spanish Minister for the Economy and Competitiveness Luis de Guindos said Monday he wrote to Eurogroup President Jean-Claude Juncker to request financial assistance for Spanish banks in need of recapitalization.
Although the amount of bailout funds was not specified, Guindos said up to 100 billion euros should be enough to help banks through crisis.
Spian's bond yields rose after the news, raising concerns about the European debt crisis. The euro slid against the dollar on Monday.
Meanwhile, investors looked forward to the summit of European leaders, which will kick off on Thursday, with attempts to strengthen fiscal integration within the euro zone expected to be discussed.
The dollar rose as the euro weakened and risk-aversion appetite helped to boost the Greenback. The dollar index gained 0.220 to 82. 662 on Monday.
In late Monday trading, the dollar bought 79.68 Japanese yen, compared with 80.45 from late Friday. The euro fell to 1.2495 dollars from 1.2561.
The British pound also fell to 1.5563 dollars from 1.5586. The dollar rose from 0.9560 Swiss francs to 0.9610, and also rose to 1. 0296 Canadian dollars from 1.0250.
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