Euro hits 2-wk lows on Spain budget and economy news

by on September 27, 2012 3:46 pm BST

NEW YORK, Sept 27 |
Thu Sep 27, 2012 11:46am EDT

(Reuters) – The euro extended losses to
hit two-week lows versus the U.S. dollar and Japanese yen on
Thursday on news about Spain’s budget for 2013 and its economy.

The euro fell as low as $1.2827, the lowest since
Sept. 12, after initially gaining slightly. It last traded at
$1.2854, down 0.1 percent on the day.

Against the yen, the euro fell as low as 99.62,
the lowest since Sept. 13. It last traded at 99.78, down 0.3
percent on the day, according to Reuters data.

Spain’s Deputy Prime Minister Soraya Saenz de Santamaria
said on Thursday the budget for 2013 would focus on cutting
spending rather than hiking taxes, and the government would pass
43 new laws to reform the economy over the next six months.

While presenting draft for the 2013 budget she also said
Spain would establish an independent fiscal authority to help
oversee its deficit cutting promises.