Dollar rises to nearly 3-week high against euro

Published April 4, 2012 4:18PM (EDT)

NEW YORK (AP) — A weak Spanish bond auction is driving the dollar to its highest level against the euro in nearly three weeks.

Spain expected to sell as much as $4.6 billion in debt Wednesday, but it only sold $3.5 billion, increasing fears that Europe's debt crisis is spreading to bigger economies.

The yield on Spain's benchmark 10-year bond shot up to 5.61 percent, a sign that investors are less confident in the country's finances. A month ago, the rate was below 4.9 percent.

The euro is trading at $1.3128 midday Wednesday, up from $1.3217 Tuesday. The euro fell as low as $1.3106 earlier, its lowest point since March 16.

The dollar is also rising against the British pound and the Swiss franc, but is falling against the Japanese yen.

By Salon Staff

MORE FROM Salon Staff

Related Topics ------------------------------------------