Euro rises vs dollar after Italian bond auction

AP News
Posted: Apr 12, 2012 4:33 PM
Euro rises vs dollar after Italian bond auction

The euro is rose against the dollar Thursday after Italy easily sold off $6.41 billion in bonds. Traders also bought euros as Spain's borrowing rates continued to fall.

The euro rose to $1.3196 in late trading Thursday from $1.3099 late Wednesday.

Demand was brisk at an auction of Italian bonds. Meanwhile, the yield on Spain's benchmark 10-year bond fell below 5.8 percent after jumping above 5.9 percent earlier in the week. Easing yields are a sign that investors are more confident in the country's finances.

In the U.S., the Labor Department said weekly unemployment benefit applications jumped 13,000 to 380,000. That's a sign that the job market's recovery remains slow.

The U.S. currency was also lower against most other currencies. The British pound rose to $1.5970 from $1.5904.

The dollar fell to 80.80 Japanese yen from 80.92 yen, to 0.9105 Swiss franc from 0.9173 Swiss franc and to 99.45 Canadian cents from 1.0039 Canadian dollar.