Euro cheaper as Italian debt rates rise

Italy paid a record 6.5% to borrow over 6 months at a bond auction this morning – the highest yield since the country joined the Euro, which has sent the single currency weaker in currency markets today.

Rates for sending Euro payments are now back near their best levels since the debt crisis worsened in October.

With the UK government’s Autumn budget statement next week, we could see a window with preferential Euro rates for the next few days. Against other currencies today, the Pound is down slightly versus the US dollar, but up against the Canadian, Australian and New Zealand dollars. We have also seen a new 2 year high for the buying rate for the South African Rand.