Thursday saw the shared currency of the European Union gain toward its top value in 10 months following a healthy bond auction in Spain, a nation that last year was on the precipice of economic tumult due to the sovereign debt crisis, Bloomberg reports.
The 17-nation currency increased in value against all 16 of its top rivals amid indications of a return to forex markets by investors after they took their interests elsewhere last year.The Spanish debt auction on Thursday resulted in the sale of 4.5 billion euros.
“People are going back into risk assets,” currency-market analyst Eimear Daly with Monex Europe Ltd. in London told Bloomberg on Thursday. “People were so concerned about risk and were holding the Swiss franc as a highly liquid asset, now the fear has abated and that’s going to pull the euro up against the franc.”
The debt auction in Spain included the sale of bonds scheduled for maturity in 2015 as well as securities that will reach maturity in 2018 and 2041.
Germany saw bond prices fall in the aftermath of Spain’s strong sale, Reuters reports.
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