Currency roundup: Euro weakens as Spain yet again denies the need for aid

Modified: Friday, 19 October 2012 16:01 BST - Written by Ben Hughes

STORY LINK Currency roundup: Euro weakens as Spain yet again denies the need for aid

The single currency has fallen for a second day in a row following Mariano Rajoy’s denial that Spain will request a bailout. Rajoy told his fellow European leaders at a summit in Brussels that his nation doesn't feel under any pressure to request a bailout despite the markets growing increasingly annoyed with the delays and uncertainty.

The 17-nation currency also dropped for the first time in a week against the Japanese Yen on speculation that the European Summit has failed to provide clarity on potential financial aid for Spain. As the doubts set in the Pound recovered some of its losses against the Euro and received a timely boost from the news that the UKs budget deficit has shrunk.

North America the Canadian Dollar weakened to a six-week low against its US counterpart after the release of the latest data on consumer prices failed to live up to expectations.

The South African Rand has made gains against all of its major peers and is set to enter a second week of gains following the news that striking Gold workers have returned to work. Gold-Fields Ltd. the nation’s second largest producer of the precious metal saw its labour force returning to work after the company agreed to a pay rise.

The New Zealand Dollar also made gains against its peers after Investment Management CO, the manager of the world’s biggest bond fund, boosted its holdings in the currency. Investors are also expecting the country’s national bank to make further cuts to interest rates as it bids to restrain the currency gains.

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