Futures Market News
Euro drops as concerns grow for Spain, Italy
Jul 24, 2012 11:20 AM
The value of the shared currency of the European Union dropped for a fifth consecutive day Tuesday against the Japanese yen as concerns grow for the financial well being of Spain and Italy, Bloomberg reports.
The bearish run for the 17-nation currency marks the longest for the monetary unit since this past May as the sovereign debt crisis continues harming regional banks, markets and public finance systems. Moody's Investor Service slashed rating outlooks for Germany and the Netherlands on Monday.
"The euro is going down, the only question is how far and how fast," head of European currency strategy Geoff Kendrick with Nomura International in London told the news source. "The Moody's downgrade adds to the negativity and the timing isn't particular helpful given what's happening in Spain."
The value of the embattled monetary unit has dropped 5.6 percent thus far this year and touched its lowest value against the currency of the Pacific Rim nation since November 2000.
Reuters reports yields on Spanish bonds continued driving higher on Tuesday, but not as quickly as they were surging on Monday.
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