Spanish turmoil pushes the euro to a 25-month low

AP News
|
Posted: Jul 20, 2012 11:27 AM
Spanish turmoil pushes the euro to a 25-month low

NEW YORK (AP) — Deepening turmoil in Spain's financial system is pushing the euro to its lowest point against the dollar in more than two years.

The yield on Spain's 10-year government bond spiked above 7 percent Friday after a heavily indebted region asked the country for more financial help. Spain's government also said it expects the recession to last into next year.

Rising yields are a sign that investors are concerned about a country's ability to pay its debt.

European finance ministers approved a $122.9 billion bailout loan for Spanish banks on Friday, but some traders believe that the government itself might need to be rescued.

The euro fell as low as $1.2143 in morning trading Friday, its lowest point against the dollar since June 2010. The euro was worth $1.2278 late Thursday.