Euro Reaches Highest This Month on Asian Stocks

The euro touched its highest level this month as Asian stocks pared losses and lawmakers in Germany, the 17-nation region’s biggest economy, reached a coalition accord on wages and spending increases.

The Bloomberg U.S. Dollar Index held a loss from yesterday before figures that may show jobless claims increased and durable goods orders fell, while U.S. consumer sentiment improved, signaling a mixed recovery that may keep the Federal Reserve from reducing stimulus this year. The euro strengthened versus most of its 16 major counterparts amid speculation a report this week will show a pick up in inflation, reducing the need for the European Central Bank to expand monetary easing.

“The euro was boosted by the news that Germany is close to reaching a coalition accord and after the currency broke above key psychological level,” said Shinichiro Kadota, a foreign-exchange strategist at Barclays Plc in Tokyo. “I don’t think euro will extend gains much from here.”

The euro bought $1.3583 at 6:50 a.m. in London after climbing to $1.3599, the strongest since Oct. 31. It gained 0.3 percent to 137.89 yen after touching 138.16, the highest since October 2009. The dollar added 0.3 percent to 101.54 yen.

The MSCI Asia Pacific Index of shares pared its decline to 0.1 percent from as much as 0.2 percent earlier. The Shanghai Composite Index rose 0.8 percent.

German Chancellor Angela Merkel clinched a coalition agreement with the Social Democrats that calls for a national minimum wage and pledges to increase spending on pensions and infrastructure without raising taxes.

1 comment:

Copyright © 2012 Forex Affairs