Euro nurses losses

The euro suffered losses in Asia on Thursday, falling from an almost five-month high against the yen as well as two-week highs on the US dollar after concerns about Spain’s finances added fresh pressure on the eurozone bonds, reports Reuters.

The euro last stood at $1.3212, having dropped from its overnight high of $1.3286. The rise in the single currency stalled ahead of resistance at the retracement of 61.8 per cent of its Feb-March fall at 1.3300.

Spanish and Italian debt prices dropped on concerns about the slow progress of Spain in boosting its finances. The series of Italian and Spanish bond selling came as a boost to German Bunds, whose yields fell back below two per cent for the first time since last week.

Bank of Tokyo-Mitsubishi UFJ currency strategist Teppei Ino said that it’s always been tough to mention any real optimism for the eurozone and that the mood in the region remains fragile. He pointed out that the fire can start to spread on just the slightest of worries, explaining that this time it appears to be affecting the peripheral bond yields. He added that the situation could yet worsen if the manufacturing data from Europe, which is due later today, comes in below forecasts.