BLBG:Euro Rises Against Dollar as German Business Confidence Climbs
The euro strengthened to the highest level in three weeks versus the dollar after data showed German business confidence rose in November, boosting optimism that Europe’s biggest economy is weathering the region’s slowdown.
The 17-nation shared currency headed for a weekly gain versus most of its 16 major peers and was poised to advance the most against the yen on speculation Europe’s policy makers will agree to keep aid flowing to Greece when they meet in three days’ time. The yen strengthened against the dollar, as a technical indicator signaled its decline this week may have been too rapid.
“The uptick in confidence is reasonably substantial and that’s constructive for Germany and for the euro area as a whole, keeping the euro relatively well-bid,” said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. “Assuming the politicians get a deal done on Greece, then there’s some potential for the euro to move higher.”
The euro rose 0.1 percent to $1.2901 at 9:38 a.m. London time, after reaching $1.2913, the highest level since Nov. 2, extending its weekly gain to 1.2 percent. Europe’s shared currency slipped 0.1 percent to 106.11 yen, still poised for a five-day advance of 2.4 percent. Japan’s currency appreciated 0.3 percent to 82.25 per dollar, trimming its decline from the end of last week to 1.1 percent.
The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, climbed to 101.4 from 100 in October for its first gain in eight months. Economists predicted a drop to 99.5 according to the median of 48 forecasts in a Bloomberg News survey.
Euro-region finance ministers will meet on Nov. 26 to discuss ways to unlock international loans for Greece and prevent it from dropping out of the shared currency. The nation has been negotiating with euro-area politicians and the International Monetary Fund over the steps needed to qualify for the release of loan installments frozen since June.
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
