Euro rises as Spain's borrowing rates ease

AP News
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Posted: Jul 25, 2012 2:28 PM

NEW YORK (AP) — The euro is rising against the dollar as Spain's borrowing rates eased, a sign that investors are more confident in the country's finances.

Traders also bought the euro after European Central Bank policymaker Ewald Nowotny suggested that the euro zone's bailout fund be given a banking license, giving it more financial resources. Traders were supportive of the idea because there has been concern that if Spain and Italy need bailouts, Europe wouldn't be able to afford it.

The euro rose to $1.2154 in afternoon trading Wednesday from $1.2061 late Tuesday.

The British pound rose to $1.5508 from $1.5504

The dollar fell to 78.12 Japanese yen from 78.18 yen and to 0.9882 Swiss franc from 0.9957 Swiss franc.