BLBG:Euro Rises for Second Day on German Sentiment, Spain Sale
The euro strengthened for a second day against the dollar after a German report showed investor confidence jumped in December and as Spain sold more than its target amount at a bill sale.
The 17-nation currency rose versus all except one of its 16 major peers as signs Europe’s largest economy is improving boosted speculation the region’s debt crisis will be contained. The Dollar Index (DXY) fell the most in a week amid speculation the Federal Reserve will expand monetary stimulus at a two-day meeting starting today. The Swiss franc weakened against the euro as UBS AG (UBSN) joined Credit Suisse Group AG in saying it will charge bank clients for deposits made in the currency.
“A combination of forces, including the ZEW index” are boosting the euro, said Audrey Childe-Freeman, head of foreign- exchange strategy at Bank of Montreal in London. “There is a broadly more bearish dollar sentiment on the looming Fed meeting. I believe that it is just a matter of time before we test $1.30 again.”
The euro gained 0.4 percent to $1.2994 at 7:01 a.m. New York time after rising 0.1 percent yesterday. The common currency appreciated 0.6 percent to 107.18 yen. The dollar was little changed at 82.47 yen.
The Dollar Index, which tracks the greenback versus the currencies of six U.S. trading partners, fell 0.3 percent to 80.123, the biggest decline since Dec. 4.
To contact the reporters on this story: Monami Yui in Tokyo at myui1@bloomberg.net; David Goodman in London at dgoodman28@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
