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Spain's political scandal pushes euro lower

Published on NewsOK Modified: February 4, 2013 at 3:56 pm •  Published: February 4, 2013
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NEW YORK (AP) — The euro fell against the dollar Monday as a political scandal in Spain worried investors.

Spain's Prime Minister Mariano Rajoy denied allegations over the weekend that he and his party received secret cash payments from businesses. Spain's top prosecutor said it may call in Rajoy for questioning if necessary. Opposition parties are calling for Rajoy to resign.

The allegations come at a time when the country was just beginning to show signs of convincing investors that its finances are improving.

Since Europe's recovery is "still in its infancy, political uncertainty isn't good for the currency," said Kathy Lien, managing director at currency trading firm BK Asset Management, in a note to clients.

The euro fell to $1.3520 in late trading Monday from $1.3662 late Friday.

The British pound rose to $1.5766 from $1.5714.

The dollar fell to 92.38 Japanese yen from 92.74 Japanese yen.

The dollar rose to 0.9084 Swiss franc from 0.9078 Swiss franc and to 99.81 Canadian cents from 99.71 Canadian cents.