By Yoshiaki Nohara and Ron Harui March 30 (Bloomberg) -- The dollar fell against higher- yielding currencies as signs the global economy is improving damped demand for the greenback as a refuge. The U.S. currency dropped against 15 of its 16 major counterparts before reports today that may show France’s economy grew at the fastest pace since March 2009 and U.S. consumer confidence rebounded. South Korea’s won rose after a central bank survey showed the nation’s manufacturers are the most confident in at least seven years. New Zealand’s dollar advanced after home-building approvals rose and commodity prices gained. “Economic news out of Europe and the U.S. are indicating a continuing recovery,” said John Kyriakopoulos, head of currency strategy at National Australia Bank Ltd. in Sydney. “Improved investor risk appetite and higher commodity prices are weighing on ‘safe haven’ currencies such as the dollar.” The U.S. dollar dropped to $1.3510 per euro as of 7:13 a.m. in London from $1.3483 in New York yesterday, when it fell to $1.3527, the weakest since March 23. The yen declined to 125.01 per euro from 124.66, and traded at 92.47 versus the dollar from 92.46. New Zealand’s currency strengthened 0.3 percent to 71.15 U.S. cents. French, U.S. Reports France’s economy grew 0.6 percent in the three months through December, unchanged from the preliminary reading, and up from 0.2 percent the prior quarter according to a Bloomberg News survey before Insee releases the report today. The Conference Board’s confidence index for U.S. consumers rose to 51 in March from 46 in February, a separate Bloomberg survey showed before the report today. Korea’s won led Asian currencies higher as Asian stocks advanced, boosting demand for regional assets. “Risk appetite’s up and fundamentally the news in Asia is really positive,” said Mitul Kotecha, Hong Kong-based head of global currency strategy at Credit Agricole CIB. “There’s evidence of strong flows coming into the region and that’s helping to boost Asian currencies as well. We’re still bullish on Asia for the rest of the year.” An index measuring expectations of Korean manufacturers climbed to 105, from 101 in March, the Bank of Korea said today. The reading was the highest since the fourth quarter of 2002, when the bank published its confidence survey on a quarterly basis. The won increased 0.5 percent to 1,130.10 per dollar. The Malaysian ringgit gained 0.3 percent to 3.2620. The MSCI Asia Pacific Index of regional shares rose 1 percent. New Zealand’s dollar strengthened for a fourth day after a report showed home-building approvals rose in February for the first time in three months. ‘More Bullish’ “The sentiment around commodity currencies is more bullish this week and the data in both Australia and New Zealand is tracking pretty well,” said Imre Speizer, a market strategist in Wellington with Westpac Banking Corp. “Economic growth in New Zealand is on track with a smaller question mark around the building side of things now.” Permits to build homes in New Zealand increased 5.9 percent in February, adding to signs residential construction will help buoy economic growth this year and spur the central bank to raise its benchmark interest rate. To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Ron Harui in Singapore at rharui@bloomberg.net.

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