Tuesday saw the common currency of the European Union fall against the world's reserve currency to its lowest rate in one week, Bloomberg reports.
Sharply increasing borrowing costs in Spain following a debt auction on Tuesday drew down the monetary unit. Prospects of the Thursday and Friday euro zone leader summit in Brussels not achieving much progress also weighed heavily on the burdened monetary unit.
"We expect a disappointing outcome from the EU leaders' summit, so therefore we think that the euro may weaken into the week's end," chief currency strategist and international economics head Richard Grace with Commonwealth Bank of Australia in Sydney told Bloomberg. "The U.S. dollar is going to remain quite firm."
On Monday, the 17-nation currency lost 1.5 percent of its value against the greenback, marking its biggest one-day drop since late May. The euro has sank 3.6 percent against the U.S. dollar thus far in 2012.
Reuters reports Spanish borrowing costs skyrocketed nearly 300 percent on Tuesday. Twenty-eight Spanish banks' credit ratings were slashed by Moody's, which also enunciated the troubles in which the nation finds itself.
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