The euro fell against most of its major currencies on speculation its advance to a 15-month high against the dollar was excessive given lingering concern Europe’s debt crisis may worsen. Europe’s common currency retreated from its highest level since May 2010 against the yen as technical charts signaled the past month’s 7.6 percent rally may reverse. The dollar ended a two-day drop against Japan’s currency after U.S. lawmakers pulled the government back from the brink of a shutdown by agreeing to cut about $38 billion from federal spending. “It’s been a very rapid acceleration and the euro will struggle a bit to rise further from here over the next few days,” said Michael McCarthy, Sydney-based chief market strategist at CMC Markets. The euro fell to $1.4461 as of 1:35 p.m. in Tokyo from $1.4483 on April 8, when it rose to $1.4489, the most since January 2010. The currency declined to 122.49 yen from 122.76 last week, after earlier reaching 123.33 yen, the strongest since May 5, 2010. The dollar traded at 84.70 yen from 84.76 yen last week. The common currency’s 14-day relative strength index was at 71.2, more than the 70 level that indicates to some traders an asset’s price may reverse direction. Against the yen, the euro’s RSI was 72.6. To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net. To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.

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