Euro Snaps Decline After Spanish Debt Auction

The euro ended its three-day drop against the US dollar and the Japanese yen as the outcome of Spain’s debt auction was much better than anticipated, relieving concerns about the European sovereign-debt crisis to some extent.

Spain sold at the auction €6.03 billion of bonds today. That was almost two times above its maximum target of â‚¬3.5 billion. The yield on the 10-year notes rose only slightly to 5.545 percent from 5.433 percent on the last auction in the previous month. The euro was further boosted by the reports that showed that the manufacturing in Germany, France and the whole eurozone was better last month than analysts predicted.

EUR/USD rose from 1.2980 to 1.3019 and EUR/JPY advanced from 101.34 to 101.38 as of 14:43 GMT today.

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