The euro advanced against 14 of its 16 major counterparts before German lawmakers vote on changes to a European bailout fund. The 17-nation currency rallied versus the dollar from a decline yesterday on speculation German Chancellor Angela Merkel will gather enough support among her coalition lawmakers for the vote today on the European Financial Stability Facility. The euro strengthened against the yen as Asian stocks pared earlier losses. “Germany will likely pass the vote,” said Teppei Ino, an analyst at Bank of Tokyo-Mitsubishi UFJ Ltd. “Euro is rebounding because it’s been sold excessively.” The euro climbed to $1.3613 as of 1:04 p.m. in Tokyo from $1.3543 in New York yesterday when it lost 0.3 percent. It traded at 104.16 yen from 103.75 yen. The yen was at 76.52 per dollar from 76.61. The vote in Berlin on changes to the EFSF would allow the fund to buy bonds of distressed states and offer emergency loans to governments. The main opposition Social Democrats and Greens have said they will vote with Merkel’s government. “Speculation is that the coalition government is likely to have enough votes to pass the EFSF,” said Lee Wai Tuck, a currency strategist at Forecast in Singapore. “I think it’s likely to pass, but any rally is a good level to sell.” The euro’s 14-day relative strength index versus the dollar was at 39.2, near the 30-level that some traders see as a sign an asset’s price may reverse direction after falling too rapidly. The MSCI Asia Pacific Index of shares slid 0.3 percent after earlier falling as much as 1.3 percent. To contact the reporters on this story: Masaki Kondo in Singapore at mkondo3@bloomberg.net; Monami Yui in Tokyo at myui1@bloomberg.net To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net

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