Euro and sterling recover from Spain downgrade - by Neil Dennis

The dollar weakened on Monday allowing the euro, sterling and most other currencies to claw back some of their losses from Friday’s session when Fitch downgraded Spain’s sovereign rating.

With the absence of trade in London and New York due to public holidays, trading volumes were very thin, making some of the price movements rather volatile.The euro managed to rebound 0.2 per cent to $1.2285 against the dollar and was up 0.5 per cent to Y112.32 versus the yen.

For more: FT.com / Currencies - Euro and sterling recover from Spain downgrade