Euro Advances for Second Day on Europe Speculation; Rand Slides
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The euro gained for a second day versus the dollar and the yen amid speculation Spain is moving closer to requesting a sovereign bailout and unlocking a European Central Bank program to curb the region’s debt crisis.
The 17-nation currency pared its advance after Reuters reported that the European Stability Mechanism lacks the cash to bail out Spain if the country asks for help before the end of the year. However, guidelines obtained by Bloomberg News last month showed the fund has the authority to raise cash by selling fixed-income securities. South Africa’s rand slid against all of its 16 most-traded peers after Standard & Poor’s cut the nation’s credit rating.