Dollar rises against euro on worries about Spain

AP News
Posted: Mar 29, 2012 3:47 PM
Dollar rises against euro on worries about Spain

Concerns about Spain's economy pushed the dollar higher against the euro Thursday.

Spanish workers went on strike to protest government spending cuts. On Friday, Spain is expected to announce more cuts when it releases its budget. The country hopes austerity measures will prevent it from needing a bailout.

Traders are worried that Spain's budget could reveal that the country's economy is in worse shape than previously thought. Another fear is that if the country does fall into financial trouble, larger economies such as Italy could be next.

Spain is already heading toward recession and has an unemployment rate of almost 23 percent.

The euro fell to $1.3287 in late trading Thursday from $1.3324 late Wednesday.

In other trading Thursday, the British pound rose to $1.5931 from $1.5894. The dollar fell to 82.40 Japanese yen from 82.79 yen and to 99.85 Canadian cents from 99.90 Canadian cents.

The dollar rose to 0.9074 Swiss franc from 0.9047 Swiss franc.