Spanish Turmoil Pushes Euro to 25-Month Low

(AP) NEW YORK
Deepening turmoil in Spain’s financial system pushed the euro to its lowest point against the dollar in more than two years Friday.

The yield on Spain’s 10-year government bond spiked above 7 percent after a heavily indebted region asked the country for more financial help. Spain’s government also said it expects the recession to last into next year.

Rising yields are a sign that investors are concerned about a country’s ability to pay its debt.

European finance ministers approved a $122.9 billion bailout loan for Spanish banks on Friday, but some traders believe that the government itself might need to be rescued.

The euro fell to $1.2159 late Friday from $1.2278 late Thursday. The euro fell as low as $1.2143 in morning trading Friday, its lowest point against the dollar since June 2010.

The dollar was mixed against other major currencies.

The British pound rose to $1.5614 from $1.5720. The dollar fell to 78.46 Japanese yen from 78.58 yen.

The dollar rose to 0.9873 Swiss franc from 0.9782 Swiss franc and to 1.0127 Canadian dollar from 1.0074 Canadian dollar.