The euro advanced against the dollar and yen as a report showed services output in the region shrank less than initially estimated in January, boosting demand for the shared currency. The 17-nation common currency reversed earlier declines. An index based on a survey of purchasing managers in the services industry rose to 48.6 from 47.8 in December, London-based Markit Economics said in a report today. That’s above an initial estimate of 48.3 published on Jan. 24. A reading below 50 indicates contraction. Australia’s dollar weakened after the central bank kept interest rates unchanged while saying the inflation outlook allowed scope for further easing. The euro rose 0.9 percent to 125.92 yen as of 9:33 a.m. London time, after falling as much as 0.7 percent. The shared currency strengthened 0.2 percent to $1.3542, after dropping 0.4 percent to $1.3459, the lowest since Jan. 29. The yen slid 0.6 percent to 92.95 per dollar after yesterday declining as low as 93.18, the weakest since May 13, 2010. The so-called Aussie fell 0.3 percent to $1.0407. The euro has gained 2.7 percent so far in 2013, according to Bloomberg Correlation-Weighted Indexes which track 10 developed-nation currencies. The yen has dropped 7.7 percent since Dec. 31 and the dollar is down 0.3 percent. To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net. To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net.

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