US Dollar Remains under Pressure on Successful Spanish and French Bond Auctions

The US dollar remained under pressure on Thursday despite bearish sentiments in US stock markets. The euro strengthened in reaction to the successful bond auctions of Spanish and French governments.

On Thursday, Spanish government sold 3.75 billion euros of government bonds equivalent $5 billion. The Spanish bonds did saw increased in their yields but the expected target was met. French 10-year bond auction also went successful meeting the target of 4.3 billion euros.

Director, Kathleen Brooks from Forex.com commented, “Although investors are happy to buy Spanish debt, it could be a long time before sovereign problems in Europe are stabilized allowing for a meaningful drop in borrowing costs for Europe’s most financially-troubled states,” she further added, “Although investors are happy to buy Spanish debt, it could be a long time before sovereign problems in Europe are stabilized allowing for a meaningful drop in borrowing costs for Europe’s most financially-troubled states.”

The single currency gained to 1.3467 against the US dollar on Thursday as compared to 1.3446 on Wednesday’s North American trading session. The euro touched the intraday high of 1.35 yesterday.

The dollar index DXY which measures the US dollar’s performance against its six major rival currencies fell to 78.293 on Thursday as compared to 78.345 on Wednesday’s late trading hours.

However the British Pound fell versus the greenback to 1.5693 on Thursday as compared to 1.5703 on late Wednesday. Against the Japanese yen, the greenback gained to 77.72 as compared to 77.53 on Wednesday.

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