Rapidly intensifying stresses on funding in Europe were pulling down the value of the 17-nation single currency on Wednesday, dragging the moneypiece near its lowest value of the year, according to published reports.
Costs and expenses for Italian borrowing gained, pushing the euro to its lowest value against the Japanese yen in 10 weeks, according to Bloomberg. Borrowing costs applied by the European Central Bank upon Spanish banks have driven higher with a deliberate manner this year. The English pound has demonstrated the healthiest performance against the euro.
"Yields start to rise again and the euro gets bashed," senior currency strategist David Watt with the Royal Bank of Canada's RBC Capital unit in Toronto told Bloomberg. "We're not seeing the developments unfold that show they want to put an end to the crisis now."
The pound achieved a third consecutive uptick against the euro on Wednesday, matching the sterling's longest streak against the euro in a month.
The euro is in such horrendous shape these days that Wednesday it was ever-nearing its lowest value thus far in the calendar year, The New York Times reports, noting the gleeful optimism from last week's European Summit appears to have been a mirage.
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