The euro was stable against the dollar on Wednesday after a two-day decline as investors waited to see whether debt-ridden Spain would ask for a bailout for its public finances. Traders said the euro is likely to trade in a range in the near term, with good support from its 200-day moving average around $1.2820, followed by the October 1 low of $1.2802. A break below there would leave it vulnerable to more falls.
The euro was little changed at $1.2881, erasing the losses which had taken it to a session low of $1.2833 on Reuters data, the weakest since October 1. Against the yen, the euro was flat at 100.84 yen, while the dollar rose 0.1 percent to 78.27 yen. The dollar index was flat at 79.935, having earlier hit 80.186, its strongest since September 11. The Australian dollar rose after a successful sale of Australian long-dated bonds boosted demand. It was last up 0.4 percent against the US dollar at $1.0240.