Euro falls after as Spain's borrowing costs soar

Associated Press

NEW YORK (AP) — The euro fell against the dollar Monday as relief over Greece's weekend election results faded.

Pro-bailout parties won an election Sunday in Greece, easing fears that the country will leave the euro. The election results initially pushed the euro higher against the dollar overnight, but it fell again as traders realized Europe's debt crisis is far from over.

Spain's borrowing rates jump above 7 percent. That's a sign that investors are concerned about the country's finances. Greece, Portugal and Ireland had to seek bailouts after their rates soared above 7 percent. The rate on Italy's 10-year bond also rose to nearly 6 percent.

The euro fell to $1.2580 late Monday from $1.2637 late Friday.

The dollar also strengthened against most other currencies. The British pound fell to $1.5665 from $1.5678.

The dollar rose to 79.13 Japanese yen from 78.71 yen, to 0.9546 Swiss franc from 0.9504 Swiss franc and to 1.0247 Canadian dollar from 1.0232 Canadian dollar.

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