American focus: euro declines on Spain’s debt, Draghi’s risk concern

The euro lost the most in almost a month against the dollar after demand declined at a Spanish bond auction, adding to concern the region is struggling to overcome its sovereign-debt crisis. Spain sold 2.59 billion euros of bonds today, less than its maximum target of 3.5 billion euros, the central bank said. Demand for notes maturing in 2015 was 2.41 times the amount allotted, down from 4.96 at the previous sale of the maturity in March. It also sold securities due in 2016 and 2020. The 17-nation currency weakened after the European Central Bank kept its benchmark rate at a record low and President Mario Draghi said the economic outlook remained subject to “downside risks.”

Sterling rallied as U.K. services growth accelerated last month and house prices increased. The pound rose against most of its major peers before the Bank of England meets tomorrow. Sterling gained 0.6 percent to 82.68 pence per euro after a gauge of U.K. services activity based on a survey of purchasing managers increased to 55.3 from 53.8 in February. A separate report showed house prices climbed 2.2 percent in March from the previous month, Lloyds Banking Group Plc’s Halifax division said.

The yen and dollar strengthened versus all their most- traded counterparts amid demand for the relative safety of the nations’ debt.