Euro continues to suffer on currency market

 

The euro can expect more testing times ahead as confidence on the foreign exchange market remains weak, a report suggests.Despite having won some support since the confirmation of a bailout deal for Ireland, the currency remains in a weaker position and is on track to record its worst month since May, Reuters reports.

Forex dealers expect to be making more euro sales in the near future on the back of increases in the ten-year bond yields from Italy and Spain, the news provider says.

Both bonds rose by more than 20 basis points yesterday (November 29th), their largest daily rise for more than ten years. Such an increase is a sign of a lack of belief that the Irish bailout will contain the debt crisis, the news agency suggests.

Today's Asian trade saw the currency win some gains, but it remains in a position of vulnerability. Other key movements in the trading saw the yen rise to an 11-week high against the single currency, Bloomberg reports.