Strong investor belief in the common currency of the European Union on Thursday helped the embattled monetary unit recover from losses the monetary unit suffered after Spain endured a credit rating slash, according to Reuters.
Now standing at just above junk, the reduced credit rating of Spain by Standard & Poor's on Wednesday might be the prompt that the Iberian nation needs to propel it to pursue an international bailout for its debt-riddled banking division. But whether the country will move forward with the request is unclear. Though the euro is unlikely to climb while Spain suffers, the currency remains of interest to investors.
"It takes away some of the tail risk attached to the euro that even the IMF is ready to give them a bit more time," said Arne Lohmann Rasmussen, head of currency research at Danske Bank. "That's one of the reasons why we like to buy the euro on dips."
Two-time bailout recipient Greece, the emblem of the sovereign debt crisis as the scourge advances toward a third year of wreaking havoc in the 17-nation bloc.
The performance of the euro is likely to point up once Spain requests a bailout, according to The Financial Times.
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