BLBG:Euro Strengthens Above $1.35 for First Time Since December 2011
The euro strengthened above $1.35 for the first time since December 2011 before a report forecast to show economic confidence in the region improved this month.
The 17-nation currency advanced for a second day against the dollar before the Federal Open Market Committee issues its policy statement today. An index of executive and consumer sentiment in the 17-nation euro area rose to 88.2 this month from 87 in December, the European Commission will say today, according to a Bloomberg News survey. South Korea’s won weakened as a government minister said the country should consider taxes on currency trading to limit “speculative” inflows of capital.
“The U.S. economy continues to be weak,” said Peter Dragicevich, a currency economist at Commonwealth Bank of Australia in Sydney. “That will just reinforce the perception in the market that the Fed’s asset purchases will continue for a while yet, and that will weaken the dollar.”
The euro gained 0.1 percent to $1.3509 at 7:39 a.m. London time after rising to $1.3515, the strongest since Dec. 2, 2011. The common currency advanced 0.4 percent to 122.89 yen. Japan’s currency dropped 0.3 percent to 90.96 per dollar.
To contact the reporters on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net; Candice Zachariahs in Sydney at czachariahs2@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
