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IPFS News Link • European Union

FOREX-Euro dips vs dlr, investors still wary on Spain

•, By Nia Williams

LONDON, April 18 (Reuters) - The euro fell against the dollar on Wednesday after French President Nicolas Sarkozy said a strong euro hurt exporters, and it looked set to stay pressured with investors still wary of Spain's fiscal problems and wider euro zone debt contagion.


Traders cited selling by Swiss investors after Sarkozy said the euro's exchange rate should be up for discussion with the European Central Bank.


The euro edged lower throughout the European session to hit a session low of $1.3076. The move erased modest gains made the previous day on upbeat earnings from U.S. companies, decent demand at a Spanish bill auction and a better-than-expected German ZEW sentiment survey.


Market players said the euro could post further losses ahead of a Spanish bond auction on Thursday, and poor demand and high yields at the auction would aggravate concerns about Spain's fragile fiscal position.