29th November 2011
The European single currency has witnessed a solid afternoon of growth today (November 29th) following a positive auction of Italian debt.
In total, the Italian government managed to sell €7.5 billion (£6.4 billion) of debt in a range of three and ten-year bonds, although its yields were forced as high as nearly eight percent.
"Market expectations (of the auction) were very low. The market is very short [on] euros going into month-end so I am not surprised by the move," George Saravelos, G10 FX strategist at Deutsche Bank told Reuters.
As a result, the euro rose by nearly one percent in forex trading this afternoon to $1.3442 against the greenback, with investors taking advantage of this gain to bring about broad buying.
The news follows earlier positive gains yesterday morning for the single currency, after rumours emerged that the International Monetary Fund could be preparing a bailout fund to help the Italian economy.
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