Friday saw a second straight day of gains for the common currency of the European Union against the U.S. dollar and the Japanese yen as Spain was believed to be arriving closer at requesting bailout aid for its troubled banks, according to Bloomberg.
Bonds issued by the government of the Iberian nation recovered slightly from scraping a one-week low against the U.S. dollar on Thursday, an occurrence probably spurred by the country's credit downgrade on Tuesday by Standard & Poor's.
"There is some buying of the euro as investors speculated the S&P downgrade may hasten Spain's request for a bailout," marketing group managing director Noriaki Murao with the Bank of Tokyo-Mitsubishi UFJ Ltd. told Bloomberg. "The markets will be watching if any progress is made at the EU summit on both the Spanish and Greek situations."
The European Central Bank's plan to purchase debt of victimized nations, which was announced in early September, first requires the nation to request bailout aid. Thus far, Prime Minister Mariano Rajoy of Spain has not issued that request.
Spain's economic minister said he has not seen political resistance to the possibility of the country requesting bailout aid, Reuters reports.