The euro advanced against the dollar and pared an earlier loss versus the yen after German business confidence fell in line with economists’ expectations. The single currency also pared an earlier decline versus the yen after the Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, dropped to 82.1 in March, from 82.6 in February. That’s the worst reading since November 1982. Economists expected a decline to 82.2. “Sentiment data is pretty dire around the world at the moment and the German Ifo is a prime example of that,” said Neil Jones, head of European hedge fund sales in London at Mizuho Corporate Bank Ltd. “However, it more or less matched expectations and as long as things don’t get worse the euro will benefit.” The euro rose to $1.3501 as of 10:25 a.m. in London, from $1.3468 yesterday in New York. It was little changed at 131.77 yen. The dollar was at 97.57 yen, from 97.86 yen. The Dollar Index gained for a second day as U.S. President Barack Obama said efforts to revive the economy are starting to take hold and that his fiscal 2010 budget will build a foundation for future growth.

Source