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Reuters said the announcement the Bank of Spain would take over the running of CajaSur caused the euro to dip amid concerns the banking sectors in the eurozone were still struggling.
The takeover was revealed after the failed merger of CajaSur with another regional lender.
"One bank bailout in Spain is not a problem, but if that number was to [grow], we could see renewed pressure on the euro," explained currency strategist at RBC Elsa Lignos.
Investor concerns about Spain's banking sector could push the euro lower, combined with the ongoing Greek debt crisis.
Meanwhile, senior currency strategist at RBC Capital Markets in Toronto Matthew Strauss said the Spanish bailout was "only part of the story", with a theme of risk aversion affecting forex trading.
During such times, investors often turn to 'safe haven gold', a commodity that usually performs well in difficult financial climates.
Posted by Chris Weaver
