Euro rises on Italian auction, ECB speculation

[August 14, 2012]  NEW YORK (AP) -- The euro is rising against the dollar after a well-received Italian bond auction. Traders also bought the euro on speculation that the European Central Bank will soon take action to reduce borrowing costs for Spain and Italy.

Italy said it easily raised $9.9 billion Monday, although the rates it had to pay investors rose slightly.

The euro rose to $1.2341 in afternoon trading from $1.2294 late Friday.

The dollar rose to 78.32 Japanese yen from 78.26 yen after Japan said that its economy grew at a slower rate than analysts were expecting in the April-through-June period.

In other trading, the British pound rose to $1.5692 from $1.5673. The dollar fell to 0.9730 Swiss franc from 0.9766 Swiss franc.

[Associated Press]

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