Corporate foreign exchange news

German bond auction affects euro in foreign exchange markets

Thursday, 24 November 2011 08:56:32 GMT

Posted by Mark Thompson
The euro traded at $1.3361 in foreign exchange markets today (November 24th) amid growing concerns that the ongoing economic turbulence may impact even its most stable nations.
According to Reuters, the multi-nation currency remained close to its recent seven-week low point as Germany's bond auction failed to achieve the level of success anticipated.
Commenting on this situation, SMBC Nikko Securities' senior strategist Makoto Noji said: "If Germany has to pay higher costs for its borrowing, it's obvious it cannot help the entire eurozone."
He added that a continued rise of the nation's bond yields may "even be a trigger for break-up of the euro".
The comments follow yesterday's sale, which proved the least successful since the formation of the single currency.
Earlier this week, the Daily Telegraph revealed that a report from the think-tank Reform suggested that the UK's government should not aim to find a "quick fix" for the nation's economy.
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