Euro down vs. rivals as Spain concerns weigh

Investing.com - The euro was down against all of it major counterparts on Thursday, as sustained concerns over rising Spanish borrowing costs and fears over the outlook for economic growth in the euro zone weighed.
 
During European early afternoon trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.53% to hit 1.3072.
 
The single currency came under broad selling pressure as Spain’s borrowing costs continued to rise following Wednesday’s poorly received government bond auction. The yield on the country’s 10-year bond climbed to 5.71% earlier, the highest level since mid-December.
 
Meanwhile, concerns over the outlook for growth in the euro zone mounted following a recent string of weak economic data.
 
Earlier Thursday, official data showed that German industrial production dropped 1.3% in February, more than expectations for a 0.5% drop and renewing concerns over the outlook for the bloc’s largest economy.
 
The single currency was also lower against sterling, with EUR/GBP sliding 0.19% to hit 0.8254.
 
In the U.K., unexpectedly weak data on factory output cast doubts over the strength of the country’s economic recovery.
 
The Office for National Statistics said that manufacturing production in the U.K. fell by 1.0% in February and the previous month’s figures was revised down to show a drop of 0.3%, giving an annual decline of 1.4%.
 
Industrial production rose 0.4% in February, slightly above expectations for a 0.3% gain.
 
The euro briefly touched a seven month low against the Swiss franc earlier, with EUR/CHF breaking through the minimum exchange rate floor of 1.20 set by the Swiss National Bank.
 
EUR/CHF hit 1.1997, the lowest level since September 6, before pulling back to 1.2014.
 
Following the move, a spokesperson for the SNB reiterated that the bank was committed to defending the 1.20 minimum exchange rate level.

Earlier Thursday, the SNB reported that foreign currency reserves rose to CHF237.5 billion in March from CHF227.2 billion the previous month.
 
The euro posted steep losses against the safe haven yen, with EUR/JPY tumbling 1.19% to hit 107.07.
 
The shared currency was also weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD losing 0.34% to hit 1.3049, EUR/AUD falling 0.46% to hit 1.2725 and EUR/NZD shedding 0.47% to hit 1.6051.
 
Later Thursday, the U.S. was to publish government data on unemployment claims.