“The euro rose above $1.30 for the first time in a week as German investor sentiment improvedmore than economists predicted and amid speculation that Spain is moving toward asking for financial assistance.
Europe’s 17-nation currency strengthened for a fourth day versus the yen as the Financial Times reported that Spain has found an acceptable formula for seeking aid. The dollar and the yen fell against most of their major counterparts before U.S. reports that economists said will show improvement in industrial production and housing starts, damping demand for the safest assets. The pound fell against the euro as U.K. inflation slowed to the least in almost three years.
“We have a general risk-on mode” helping the euro to appreciate, said Daragh Maher, a currency strategist at HSBC Holdings Plc in London. “There’s also the local news with the suggestion that Spain was pretty much on the brink of asking for help. That has helped. It was a combination of the two that brought us above $1.30.””Comments »