Euro Rebound After Italy Sells Debt

The euro rebounded today after Italy sold maximum amount of its bonds on today’s auction, easing worries about the credit crisis in the European Union that reemerged after Moody’s cut credit ratings of several European countries.

Italy sold €4 billion of securities that mature in 2014, reaching its target. Yield dropped from 4.83 percent on the previous auction to 3.41 percent. The euro was supported by the positive outcome of the auction, while earlier the currency declined as Moody’s Investor Service downgraded ratings of several European countries, including Italy.

EUR/USD traded at about 1.3192 as of 12:10 GMT today after it opened at 1.3186 and dropped to the daily minimum of 1.3127. EUR/JPY went up from 102.27 to 102.97.

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