Euro increase quelled following IMF statement

The euro saw a promising start to trading this morning (November 28th), but the recovery was quickly halted after the International Monetary Fund issued a statement denying it is preparing an aid package for Italy.

A rise of 0.7 per cent for the single currency took place in forex trading today, but this upturn has been cut short as investors now focus on upcoming bond sales in Belgium, as well as debt sell-offs in Italy, Spain and France, Reuters reports.

Jane Foley, senior currency analyst at Rabobank, told the news provider: "The euro looks very vulnerable in a week where there is an awful amount of supply from eurozone countries. Trade will be directional and will be based on how the response is to these auctions."

Last week, Reuters revealed on Friday that the currency fell to an almost seven-week low in Asian trading, as investors continue to have fears that ongoing debt issues could blight major eurozone economies for some time to come.