Borrowing cost fall for Spanish lifts euro

The euro has reported a 0.6 per cent rise against the US dollar this morning (December 20th) following a successful Spanish bill auction.

Forex trading for the European single currency was bolstered after Spain delivered a sharp fall in its borrowing costs, albeit in thin trading conditions.

As a result of the fortuitous sales, the euro moved away from an 11-month low to stand at $1.3075 as of 10:39 GMT, although sentiment regarding future changes remains fragile.

However, Raghav Subbarao, a currency strategist at Barcap, told Reuters: "German data is holding up and that increases the probability of a hawkish European Central Bank, but that is not necessarily good for the overall real economy."

Yesterday, news of the death of North Korean dictator Kim Jong-il failed to make too much of an impact on the euro. However, ongoing fears over the state of eurozone debts did push down the currency in early trading.