Spanish Turmoil Pushes Euro to 25-Month Low

Spanish Turmoil Pushes Euro to 25-Month Low

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.

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