Euro Rises Against Dollar as Spain’s Plan Bolsters Bailout View
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The euro strengthened against the dollar after Spain announced its fifth austerity package, adding to speculation that it will meet the requirements for a European financial bailout to contain its debt crisis.
The dollar weakened against all of its 16 most-traded peers after claims for U.S. jobless benefits fell more than forecast amid increased demand for risker assets as stocks rose for the first time in six days and crude-oil futures increased. The 17-nation currency rallied, after reaching a two-week low, as Spain’s budget plan “responds to country-specific recommendations and goes even beyond them in some areas,” European Union Economic and Monetary Affairs Commissioner Olli Rehn said in e-mailed statement.