Euro Pares Declines as EU Reaches Agreement With Banks

The euro pared its loss against the dollar as European Union leaders said they reached agreement on a plan to recapitalize the region’s banks.

The shared currency also eliminated declines against the yen after reports China may be willing to respond to a European request to help fund a package to solve the euro region’s debt crisis. The dollar strengthened against the Japanese currency before the Bank of Japan holds a one-day policy meeting, after reaching a record low. Canada’s dollar and Mexico’s peso were the best performers against the euro as U.S. durable goods orders were stronger than expected.