The euro erased a decline versus the dollar as stocks amid speculation European policy makers are looking at measures to shield banks from the region’s sovereign- debt crisis, boosting stocks and damping demand for safety. The 17-nation currency pared a loss against the yen even after Moody’s Investors Service cut Italy’s debt rating three levels, citing concern the government will struggle to reduce the region’s second-largest debt levels. European stocks rose after the Financial Times quoted Olli Rehn, European Union commissioner for economic affairs, as saying there’s an “increasingly shared view” the region needs a coordinated approach to halt the debt crisis. The euro rose 0.1 percent to $1.3367 at 11:49 a.m. in London, after dropping as much as 0.7 percent. The common currency was little changed at 102.47 yen, after declining 0.9 percent. The dollar slipped 0.2 percent to 76.67 yen. The Stoxx Europe 600 Index climbed 2.2 percent. To contact the reporters on this story: Keith Jenkins in London at kjenkins3@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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