Euro Gains First Time in Week as ECB Buys Bonds; Dollar Falls
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The euro strengthened for the first time in a week against the dollar and yen amid speculation European Central Bank buying of Italian and Spanish bonds will stem surging borrowing costs in the region.
Europe’s shared currency rose from yesterday’s five-week low versus the yen amid reports the ECB may start talks to lend to the International Monetary Fund for sovereign bailouts. Italian bonds rose. Norway’s krone rallied against the dollar as the government said it will prop up its export industry with new loans. The Canadian dollar gained after data showed consumer prices rose more than forecast.