The euro extended gains versus the dollar and the yen amid reports the International Monetary Fund is proposing a $1 trillion expansion of its lending resources to safeguard the global economy.
The 17-nation currency strengthened against all except two of its 16 major counterparts after an official at a Group of 20 nation told Bloomberg the IMF is pushing China, Brazil, Russia, India, Japan and oil-exporting nations to be the major contributors. The fund wants the agreement to be reached at a Feb. 25-26 meeting of G-20 finance ministers and central bankers in Mexico City, according to the official who spoke on condition of anonymity because the talks are private.
“The news that the IMF will probably get more money and could increase its lending capacity, is one factor supporting the euro,” said You-Na Park, a foreign-exchange strategist at Commerzbank AG in Frankfurt. “Short-term risk sentiment seems to be improving.”
The euro advanced 0.7 percent to $1.2825 at 10:28 a.m. London time, after rising 0.5 percent yesterday. Europe’s shared currency climbed 0.6 percent to 98.44 yen. The dollar was little changed at 76.75 yen.
To contact the reporters on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
