The Euro has been given a boost after Asian investors, particularly China, showed interest in buying Portugal’s bail out bonds that will be issued in mid-June.
A report on Wednesday by the Financial Times cited senior official from the EFSF (European Financial Stability Facility) that Asian investors are expected to buy a “strong proportion” of Portuguese bailout bonds once they are being auctioned in around two weeks.
Klaus Regling, chief executive of the EFSF mentioned that Beijing was “clearly interested” in the Portuguese auctions.
The European rescue fund EFSF will hold its first auction to raise funds for the recently approved 78 billion Euro Portuguese bailout in mid-June. The 3 billion to 5 billion Euro offering will auction the fund’s first 10-year bonds.
The report gave a much needed boost to the Euro which has been very fragile lately due to the ongoing concerns of the European debt crisis and particularly on worries that Greece may be on the verge of defaulting on its debt.
The Asian interest will give renewed confidence in the Euro as a currency once again.
The Euro gained almost 130 pips from Asian trading until early European session trading. EURUSD reached highs of 1.4195 this morning compared to yesterday’s European session high of 1.4091.