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The euro was little changed on Wednesday as initial optimism after Portugal's successful bond sale faded amid ongoing concern about eurozone debt problems. In less than a week, the euro first gained strongly on expectations of a eurozone interest rate hike next month but then fell back as investors considered what higher borrowing costs will mean to peripheral nations already struggling under high debt burdens.
The common currency was last flat on the day at $1.3907, recovering from a low of $1.3855, on electronic trading platform EBS though off the session high of $1.3942. The dollar was up 0.2 percent against the yen at 82.81 yen, supported by a generally rising trend in US Treasury yields.

Copyright Reuters, 2011

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