Submitted by Fox First at Ten on June 12th
NEW YORK (AP) - The euro was flat against the dollar Tuesday, even as borrowing rates in Italy and Spain soared, a sign that investors are worried about the finances of both countries.
Traders are concerned that a $125 billion rescue plan for Spain's financial industry offered by other European countries is only a temporary fix for Europe's debt crisis.
The interest rate on Spain's 10-year benchmark bonds jumped as high as 6.82 percent. Italy's yields rose just over 6 percent.
On Monday, Italy said that its economy contracted in the first quarter, raising fears that it may be the next country to ask for a bailout.
The euro was unchanged at $1.2498 late Tuesday.
The dollar was mixed against other currencies. The British pound rose to $1.5570 from $1.5498. The dollar fell to 1.0270 Canadian dollar from 1.0305 Canadian dollar.
The dollar rose to 79.49 Japanese yen from 79.44 yen and to 0.9610 Swiss franc from 0.9609 Swiss franc.
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