Euro benefits against yen from strong Dutch debt auction

Posted On: April 24, 2012
Losses of the shared currency of the European Union against the Japanese yen halted on Tuesday after the Dutch sale of the equivalent of roughly $2.6 billion in bonds, allaying concerns about the sovereign debt crisis attacking the bloc's more solidified economies, according to Bloomberg.

Conjecture is spreading about additional intervention by the Bank of Japan by the end of this week as the euro advanced against the majority of its counterpart currencies.

"The Dutch auction got away without a serious hitch, which is good news for the euro," head of currency strategy Jeremy Stretch with Canadian Imperial Bank of Commerce in London told Bloomberg. "People are mindful of the BOJ meeting at the end of the week, which is stopping them from going too much into the yen."

Despite the strong debt auction, the government of the Netherlands is on the brink of collapse, according to Reuters.

The Dutch uneasiness and the increasingly likelihood that France, owner of the bloc's second-largest economy, will vote out its incumbent leader are pinching the value of the 17-nation monetary unit.

Category: Industry News

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