The single currency finally gained on Monday after touching its lowest level versus the greenback since January. Currency strategists however were still doubtful over the region’s outlook due to Greece political turmoil and increased worries over region’s banking system.
Investors were also concerned over the rising yields of Spanish bonds. Director of currency research, Katy Lien from GFT commented, “The continual upside pressure on Spanish bond yields represent the market’s ongoing concerns about Europe and the overwhelming desire of investors to sell rallies in the euro.”
The dollar index DXY which tracks the greenback’s movement against its six major counterparts fell to 80.970 on Monday as compared to 81.163 on Friday’s late trading hours. The dollar index ended its 14 days rally on Friday which was the longest since 1985.
Among other currencies, the British Pound traded at 1.5829 against the US dollar on Monday as compared to 1.5823 on late Friday. Against the Japanese yen the US dollar gained to 79.30 on Monday as compared to 79.03 on late Friday.
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