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Euro Rises Versus Dollar on Speculation European Central Bank to Buy Bonds

Enlarge image Euro Declines Versus Dollar, Yen Before Portuguese Bond Sale

Euro Declines Versus Dollar, Yen Before Portuguese Bond Sale

Euro Declines Versus Dollar, Yen Before Portuguese Bond Sale

Chris Ratcliffe/Bloomberg

The 17-nation euro declined 0.3 percent today, according to Bloomberg Correlation-Weighted Currency Indexes, which track the foreign exchange of 10 developed nations.

The 17-nation euro declined 0.3 percent today, according to Bloomberg Correlation-Weighted Currency Indexes, which track the foreign exchange of 10 developed nations. Photographer: Chris Ratcliffe/Bloomberg

March 9 (Bloomberg) -- Alan Wilde, head of fixed income and currencies at Baring Investment Services Ltd., discusses the outlook for European bond markets. Wilde spoke yesterday with Bloomberg's Anchalee Worrachate at the Euromoney Bond Investors Congress in London. (Source: Bloomberg)

March 9 (Bloomberg) -- Moritz Kraemer, managing director of European sovereign ratings at Standard & Poor’s, discusses the possibility of further European sovereign debt rating downgrades. Kraemer spoke yesterday with Bloomberg's Anchalee Worrachate at the EuroMoney Bond Investors Congress in London. (Source: Bloomberg)

The euro rose against the dollar on speculation that the European Central Bank will buy bonds of the region’s most-indebted nations to arrest a rout after the yields on Portuguese debt climbed to a record.

Europe’s common currency reversed an earlier decline against the yen after a report showed German factory output increased more than economists estimated in January. The ECB checked prices of Greek and Irish securities earlier today, according to two traders with the knowledge of activity. A central bank spokesman declined to comment.

“The euro turned after there was talk, which we can’t confirm, in the market that the ECB checked prices of some peripheral bonds,” said Geoffrey Yu, a currency strategist at UBS AG in London. “The factory output is strong.”

The euro rose 0.1 percent to $1.3924 as of 7:34 a.m. in New York. It advanced 0.2 percent to 115.13 yen, while the Japanese currency was little changed at 82.69 per dollar.

To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net; Anchalee Worrachate in London at aworrachate@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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