Euro Gains as Spain Garners Increased Demand at Bond Auction

Dec. 2 (Bloomberg) -- The euro advanced for a second day against the dollar after Spain sold 2.5 billion euros ($3.3 billion) of debt in the first bond auction since Ireland’s bailout.

The 16-nation currency climbed 0.4 percent to $1.3189 at 10:13 a.m. in London, after earlier losing as much as 0.4 percent. The euro bought 110.99 yen, from 1110.58 yesterday.

Demand for the Spanish debt was 2.27 times the amount sold, compared with a bid-to-cover of 2.16 at an October sale.

The dollar fell the most against the South African rand and the New Zealand dollar before a report economists said will show the number of Americans who signed contracts to buy previously owned homes fell in October for a second month, fueling a concern the economic recovery may stall.

To contact the reporters on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net.

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net