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According to the Wall Street Journal, the euro regularly moved above and below the $1.42 mark during European trading after Italy negotiated an auction of bond sales.
While the debts were successfully shifted, borrowing costs rose to record highs, with the nation's five-year bond yields rising to 4.93 per cent, while 15-year bonds were sold at just below the six per cent mark.
Citigroup noted the fx trading session had been characterised by periods of "frenetic activity" as traders attempted to read the market.
Adam Cole, a strategist at RBC Capital Markets, echoed these comments and said the current conditions are likely to remain in place over the coming days.
"Expect a couple of very volatile days, markets are very jittery. There is plenty going on," he remarked.
Posted by Greg Secker
