FX round-up: Euro carves out gains after Spanish vote
Tue 23 Oct 2012
LONDON (SHARECAST) - The euro rose against major currencies on Monday after Spain's regional election results saw Prime Minister Mariano Rajoy’s party retain power in Galicia.
Rajoy’s election victory means that Spain is more unified and helps him push through the austerity measures the government is being asked to introduce. Ultimately the win should make it easier for Spain to ask for a bailout.
The single currency rallied to an intra-day high of $1.3084 before later trading at around $1.3046 versus $1.3025 the previous session.
Meanwhile the yen tumbled against the euro and the dollar on Monday after reports suggested that the Bank of Japan could possibly announce more easing measure at its meeting next week.
The ICE dollar index, which measures the greenback against a basket of six major currencies, stood at 79.654 from 79.628 on Friday.
Against the yen, the dollar rose to a high of ¥79.94 compared to ¥79.31 late Friday after trade data showed Japanese exports to China fell sharply last month.
Sterling bought $1.6007 from $1.5998 before and fell to a five month low against the broadly stronger euro.