Euro sharply pares losses as market digests Spain news

by on September 27, 2012 4:05 pm BST

NEW YORK, Sept 27 |
Thu Sep 27, 2012 12:05pm EDT

(Reuters) – The euro pared losses after
hitting two-week lows versus the U.S. dollar and Japanese yen on
Thursday as market participants digested news about Spain’s
budget for 2013 and its economy.

The euro last traded nearly flat at $1.2874 after
earlier hitting a low of $1.2827, the lowest since Sept.

Against the yen, the euro last traded down 0.1 percent at
99.94 after earlier hitting a low of 99.62, the lowest
since Sept. 13, 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.