The euro advanced against the pound after a report showed German business confidence this month met the expectations of economists. The 16-nation euro gained as the Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, was 82.1 in March, compared with 82.6 in the previous month. The median forecast of 37 economists surveyed by Bloomberg was for a drop to 82.2. “Sentiment data is pretty dire around the world at the moment, and the German Ifo is a prime example of that,” said Neil Jones, head of European hedge fund sales at Mizuho Corporate Bank Ltd. in London. “However, it more or less matched expectations, and as long as things don’t get worse the euro will benefit.” The euro traded at $1.3479 at 8:16 a.m. in New York, from $1.3468 yesterday. It touched $1.3419, the lowest level since March 19. The euro traded at 131.83 yen, compared with 131.81. The dollar traded at 97.76 yen, compared with 97.86. Against the pound, the euro appreciated 0.9 percent to 92.58 pence from 91.73 pence. South Korea’s won was the biggest gainer versus the dollar after a finance ministry official said the government aims to spend 17.7 trillion won ($13.3 billion) by May or June to help the economy recover. The won gained as much as 2.1 percent to 1,362 per dollar, the strongest level since Jan. 28. ‘Positive Sentiment’ “There’s some positive sentiment that has led to a softening of the U.S. dollar” against the won, said Thio Chin Loo, a senior currency analyst at BNP Paribas SA in Singapore. The won is the biggest loser against the dollar this quarter, dropping 7.6 percent on speculation South Korea’s economic slump will deepen. South Korea’s economic stimulus plan includes funds for cash handouts, cheap loans, infrastructure and job training, the government said yesterday. U.S. durable goods orders fell in February for a seventh month and new home sales decreased, economic reports are forecast by economists to show today. Bookings for goods meant to last several years decreased 2.5 percent, according to the median forecast of 69 economists surveyed by Bloomberg, after dropping 4.5 percent in January. A separate report is forecast to show new-house sales declined to the lowest level on record. The dollar slid 3.7 percent against the euro since the Federal Reserve announced on March 18 that it will buy $300 billion of longer-term Treasuries, spurring speculation the central bank is debasing the currency. Ifo’s measure of expectations increased to 81.6 in March, from 80.9 for a third monthly gain. Business confidence in Belgium unexpectedly increased this month, the Brussels-based National Bank of Belgium said yesterday. The index rose to minus 28.6 from minus 31.6 in February.

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