Euro rises on hopes Spain will ask for bailout

AP News
Posted: Oct 16, 2012 3:32 PM
Euro rises on hopes Spain will ask for bailout

NEW YORK (AP) — The euro rose against the dollar Tuesday on speculation that Spain will soon ask for financial aid from the European Union's bailout fund.

Economists believe that Spain needs financial aid, but the country has not yet asked for it. A request for aid from Spain would help remove some uncertainty about Europe's debt crisis.

The euro also rose after a German survey found that investor optimism rose in September. The survey index rose more than expected to minus 11.5 points from minus 18.2 in September. Analysts had expected a reading of minus 14.9 points.

The euro rose to $1.3043 late Tuesday from $1.2941 late Monday. The euro rose as high as $1.3060, its highest level in nearly a month.

The British pound rose to $1.6113 from $1.6071.

The dollar fell to 0.9270 Swiss franc from 0.9340 Swiss franc.

The dollar rose to 78.90 Japanese yen from 78.70 Japanese yen.