Germany open to precautionary Spanish credit line (by MarketWatch)

FRANKFURT (MarketWatch) -- Germany is open to allowing Spain to seek a precautionary credit line from the European Union's European Stability Mechanism rescue fund, Bloomberg reported Tuesday, citing senior coalition lawmakers. The euro (eurusd) , which had gained ground after news reports said Spain was weighing a request for a precautionary credit line, extended gains and changed hands in recent action at $1.3048 after trading as high as $1.3060 in earlier action, its highest level versus the dollar since Sept. 19. "News that Germany is now open to a possible credit line to Spain (rather than a full-blown ESM program) is really surprising as Germany has always showed its preference to a stricter program," wrote analysts at Newedge in London.