By Keith Jenkins and Masaki Kondo Dec. 2 (Bloomberg) -- The euro rose versus the yen and dollar after people familiar said a proposal to channel central bank loans through the International Monetary Fund may deliver up to 200 billion euros ($271 billion) to fight the debt crisis. The 17-nation currency extended its biggest weekly gain in a month against the greenback as European stocks rallied, fueling demand for the region’s assets. The yen and dollar weakened versus their major counterparts before a U.S. report today that economists said will show employers increased hiring last month. The euro gained 0.8 percent to 105.43 yen at 7:40 a.m. in New York, extending this week’s gain to 2.5 percent, the most since the period ended Oct. 14. The shared currency strengthened 0.5 percent to $1.3534, having risen 2.2 percent this week, also the most since Oct. 14. The yen weakened 0.2 percent to 77.65 per dollar. At a Nov. 29 meeting attended by European Central Bank President Mario Draghi, euro-area finance ministers gave the go- ahead for work on the plan, said the two people, who declined to be named because the talks are at an early stage. The need for a new crisis-containment tool emerged as the effort to boost the 440 billion-euro rescue fund to 1 trillion euros fell short. U.S. employers hired 125,000 workers in November after adding 80,000 the previous month, according to a Bloomberg survey before today’s Labor Department report. The Institute for Supply Management said yesterday its gauge of manufacturing rose to 52.7 in November, the most in five months. Readings above 50 indicate growth. The Stoxx Europe 600 Index gained 1.5 percent, and futures on the Standard & Poor’s 500 Index expiring in December advanced 1.4 percent. --With reporting by David Goodman in London, Hiroko Komiya in Tokyo and Kristine Aquino in Singapore. Editors: Nicholas Reynolds, Mark McCord To contact the reporters on this story: Keith Jenkins in London at Kjenkins3@bloomberg.net; Masaki Kondo in Singapore at mkondo3@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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