Futures Market News
Spain's drive toward bailout aid request boosts euro
Sep 21, 2012 11:24 AM
Friday saw the common currency of the European Union climb against the world's reserve currency as speculation swirled about debt-riddled Spain is set to request international bailout aid, the latest nation brought to its knees by the sovereign debt crisis, according to Reuters.
Spain is reviewing plans to freeze pensions and enhance the procedure to raise retirement aid to satisfy demands typical of international aid packages. The 17-nation currency was pushing toward its highest value in at least four months.
"It is just a matter of time before Spain applies for financing in the coming weeks and that will be euro positive," chief currency strategist Carl Hammer with SEB in Stockholm told Reuters, noting the Spanish request would be considered euro positive. "We are coming to the point where most of the good news for the euro is discounted."
The monetary unit on Thursday dropped in value after regional business surveys indicated the recession that has gripped the euro zone is deepening.
Policy makers in Europe were preparing to show plans to bailout Spain, according to Bloomberg.
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