“The euro rose for a second day versus the dollar and yen amid speculation Portugal’s parliament is coming closer to agreeing on a budget and as euro-area finance chiefs hold a conference call today on Greece.
The 17-nation currency strengthened against 13 of its 16 major counterparts before Portuguese lawmakers hold an initial vote on the 2013 budget proposal. The dollar fell after Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said yesterday monetary policy is currently “too tight,” speaking as the northeast U.S. assessed the damage caused by the tropical cyclone Sandy. Norway’s krone rose after the central bank said it won’t buy foreign currency.
“Positive news from the parliaments of Greece and Portugal — that could be supportive for the euro,” said Jane Foley, a senior currency strategist at Rabobank International in London. “The perception that the Fed could leave policy more accommodative for longer on the back of the rebuild because of the floods is also supportive. If it’s good for risk appetite, you could see it pushing the euro a little bit higher.”
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