The single currency was losing again today, dropping below $1.31 (EUR/USD) on Wednesday afternoon, amid persistent doubts about the sovereign status of Europe. At this time, the euro yield is 0.42% against the greenback at 1.3073 dollars per euro.

The IMF reviewed yesterday, downgrading its growth forecast for Spain in 2012, which shows a little less pessimistic for other countries in the euro area, and more confident than three the previous 3 months..

The research department considers however that significant downside risks remain, particularly in Europe where the case is far from being fully resolved. Not to mention the possible additional surge in oil prices.

While the performance of government bonds from Spain on 10 years displayed this afternoon a yield of 5.80%, or 11 points lower than the opening. The ’10 years’ Italian also slows to 5.45%, as the French equivalents (below 3%) and German (under 1.75%).

Note also that the European currency lost 0.59% against the Pound to 0.8193 with the prospect of further monetary dilution across the Channel. The “minutes” of the last meeting of the Monetary Policy for Bank of England dropped this morning. The plan of quantitative easing introduced by the UK in the wake of the Fed will end in May, said a trader based in Europe.

In contrast, the euro is recovering quite substantially against the Japanese yen (+ 0.36% to 106.5 yen). Another commenter echoed rumors that the Bank of Japan would soon announce measures of monetary support.