July 1 (Bloomberg) -- The euro may benefit from rising stocks as the link between equity movements and those of the common European currency get stronger, according to Helaba Landesbank Hessen-Thueringen

“The ups and downs on the equity markets are still closely correlated with movements in the euro-dollar exchange rate,” Ralf Umlauf, head of floor research at Helaba, said in a note today. “The correlation has even increased slightly recently. To this extent, especially in the current phase of economic stabilization, the euro is likely to be supported by the initial reduction of risk aversion.”

The euro climbed 0.3 percent to $1.407 as of 10:19 a.m. in London.

To contact the reporter on this story: David Clarke in Edinburgh at dclarke3@bloomberg.net

Last Updated: July 1, 2009 05:24 EDT