Euro bounces higher against the dollar
FILE PHOTO
NEW YORK – The euro rose on Tuesday amid hopes of more spending from the US Federal Reserve and after a solid, if expensive bond auction for Spain.
The euro rose 0.9 percent against the dollar to fetch $1.2688 by 2230 GMT.
The gains followed an auction which saw Spain raise 3.04 billion euros ($3.8 billion) in a short-term debt sale on Tuesday, even as its borrowing costs soared.
Meanwhile, the US Federal Reserve began a two-day meeting, which many on Wall Street expected would culminate in the Fed pumping more money into the economy or trying to lower long-term interest rates.
Either move would be expected to weaken the dollar.
Against the yen the dollar fell 0.3 percent to 78.89. The pound rose 0.4 percent to $1.5735.
The US fell almost one percent to 0.9466 Swiss francs.
