Euro falls as Bank of Spain warns of sharp Q3 GDP fall

by on September 26, 2012 8:26 am BST

LONDON, Sept 26 |
Wed Sep 26, 2012 4:26am EDT

(Reuters) – The euro fell to a two-week low
against the dollar on Wednesday after the Bank of Spain said
available data suggested Spain’s gross domestic product kept
falling at a “significant rate” in the third quarter.

The euro fell 0.4 percent on the day to hit $1.2848
on EBS trading platform, its lowest since Sept. 12, before the
Federal Reserve announced aggressive quantitative easing.

More losses would see it target the 200-day moving average
at $1.2826 as concerns mount over when Spain will seek an
international bailout.

The single currency also fell to a near two-week low against
the yen of 99.71 yen on EBS.

The euro’s gains helped the dollar rise against a basket of
currencies, with the index hitting a two-week high of
79.90. However, it hit a near two-week low against the
safe-haven yen of 77.60 yen on EBS.