Spain requesting aid for its troubled banks dragged down the 17-nation currency on Tuesday against the U.S. dollar, according to published reports.
Reuters reports the nation hosting the euro zone's fourth-largest economy – trailing those of Italy, France and Germany – is set to conduct a debt auction later this week. The euro fell from its highest value in seven days against the U.S. dollar and its top value in three days against the Japanese yen, according to Bloomberg.
"With economic data showing little signs of stabilization, lingering political uncertainty in Greece, and concerns about Spanish banking, headwinds for the euro will persist over the medium-term," states a Tuesday client note authored by currency strategy global head Marc Chandler with Brown Brothers Harriman & Co. in New York, according to Bloomberg.
The monetary unit has lost 3.7 percent of its value in the past six months, establishing itself as the worst performing of the monetary unit of 10 developed nations, according to Bloomberg.
Central bankers and finance ministers from the Group of Seven nations – United States, Canada, Japan, Britain, Germany, France and Italy – are set to discuss the issues troubling Spain during a Tuesday teleconference, according to Reuters.
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