By Ben Levisohn May 19 (Bloomberg) -- The euro rose from a four-year low against the greenback amid speculation European leaders may announce steps to support the common currency. The euro rose against all of its 16 most-traded counterparts as European Union Economic and Monetary Affairs Commissioner Olli Rehn cited “strong pressure to take action against speculative attacks” and Bundesbank President Axel Weber said he’s concerned of “dramatic” developments in financial markets on May 24 unless German lawmakers agree on May 21 to support an aid package to support the euro. “The market is hopeful that Europe can come up with a plan that will address the negative issues that have come to fore since because of Greece,” said Andrew Busch, a global currency strategist at Bank of Montreal in Chicago. “Europe needs thoughtful debate about what they can do and address how to kick someone out who is breaking the rules.” The euro rose 0.8 percent to $1.2302 at 9:27 a.m. in New York, from $1.2202 yesterday. The 16-nation common currency earlier touched $1.2144, the lowest level since April 17, 2006, The euro traded at 112.96 yen, from 112.56. The yen appreciated 0.5 percent to 91.79 per dollar, from 92.23 yesterday. The euro earlier fell to near an eight-year low versus the yen after Germany yesterday prohibited naked short-selling on sovereign debt and some financial stocks. European Commission President Jose Manuel Barroso said European securities regulators are examining whether Germany’s move on short-selling is relevant elsewhere in Europe. Germany’s action “appears reactive and it appears not to be coordinated with the other members of the European Union,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co. in New York “There’s something of a sentiment that there’s more to come. Markets are on the edge, jittery and waiting for what’s next from policy makers.” To contact the reporters on this story: Ben Levisohn in New York at blevisohn@bloomberg.net.

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