BLBG:Euro Advances As Spain Sells More Bills Than Target; Krone Gains
The euro rose for the first time in three days against the dollar after Spain sold more bills than its maximum target at an auction amid speculation the European Central Bank is readying measures to counter the debt crisis.
Europe’s shared currency climbed from a one-week low against the yen as Spain’s Prime Minister Mariano Rajoy prepares to meet European Union President Herman Van Rompuy in an effort to solve the nation’s funding problems. Norway’s krone advanced to a three-month high against the dollar before a report that economists said will show U.S. consumer confidence improved in August, spurring demand for higher-yielding assets.
“The market is waiting for the ECB, to see what they will do, and that’s helping encourage risk sentiment generally,” said Steven Barrow, head of Group-of-10 research at Standard Bank Plc in London. “There’s more room for upside in the euro over the next few weeks.”
The euro advanced 0.4 percent to $1.2552 at 10:39 a.m. London time. Europe’s shared currency rose 0.2 percent to 98.59 yen after dropping to 97.89 yen, the weakest since Aug. 20. The dollar declined 0.2 percent to 78.56 yen.
The euro may strengthen beyond $1.30 over the next month, Standard Bank’s Barrow said.
The Spanish Treasury sold a combined 3.6 billion euros of three- and six-month bills, more than the 3.5 billion euros it originally sought. The three-month securities were auctioned at a yield of 0.946 percent, down from 2.434 percent at the previous sale on July 24.
The krone gained 0.5 percent to 5.8073 per dollar after appreciating to 5.8038, the strongest level since May 8.
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
