Euro Gains Versus Dollar on Spain’s Bill Sale, Less Debt Concern
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The euro rallied to a one-week high against the dollar after borrowing costs fell at a Spanish bill sale and German business confidence unexpectedly increased, easing concern the region’s debt crisis is worsening.
The European Central Bank offered unlimited three-year loans to the region’s banks, boosting demand for higher-yielding assets. The U.S. currency fell against all of its 16 most-traded counterparts on reduced demand for a refuge as builders broke ground in November on the most houses in more than a year, adding to evidence of economic recovery. Sweden’s krona and the Australian dollar rallied after central banks signaled they may hold off on cuts in interest rates at the start of 2012.