Spanish concerns keep euro under pressure The euro fell against the dollar even as Italian borrowing costs fell at an auction, as markets awaited details of the Spanish government's budget for the following year, with further austerity measures expected as the country tackles its heavy debt burden. The single currency fell more than 0.1 per cent to $1.2855, shrugging off the successful Italian government bond auction, as eurozone confidence indicators dipped in September. The euro had hit a two-week low the previous day on concerns about the cost of Spanish debt and political turmoil in the eurozone's fourth-largest economy. Investors were hoping that the details of the budget would throw some light on how soon Spain was likely to request aid from its eurozone partners and allow the European Central Bank's bond-buying plan to kick in, removing one of the main uncertainties in financial markets. "Should EU authorities react positively to this budget, this will likely suggest that future conditionality for ECB bond buying will not go much further beyond measures already in place, opening the door for OMTs," said analysts at Morgan Stanley. But some were warning that Spain would need to request EU aid in the very near future to avoid further falls in the euro. Absent a bailout request over the weekend, we suspect that the slide in euro-dollar could extend into next week. The recent underperformance of the G10 risk-correlated currencies could continue as well," said Valentin Marinov, currency analyst at Citigroup. Investors were also keeping an eye on the Czech koruna, with the country's central bank widely expected to cut interest rates to 0.25 per cent later on Thursday. There were also expectations the central bank could embark on more unconventional measures, such as intervention in the forex market, to support its currency. "With low yields, a very dovish central bank and weak data, we continue to expect Czech koruna underperformance," said analysts at Credit Suisse. The dollar fell less than 0.1 per cent to Kc19.38.