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.
Article continues after this advertisementAgainst 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.
