Euro Strengthens Against Dollar on Italy Auctions; Yen Weakens on Stimulus

The euro strengthened against the dollar after Italy sold the maximum amount at a bond auction, with borrowing costs falling to the lowest since March.

The 17-nation currency appreciated 0.2 percent to $1.3210 at 10:28 a.m. London time, and climbed 0.7 percent versus the yen to 103.05.

The Italian Treasury sold 4 billion euros ($5.3 billion) of benchmark securities due in November 2014 to yield 3.41 percent, down from 4.83 percent at the last auction of similar-maturity bonds on Jan. 13. The nation also sold 2015 and 2017 debt.

The yen weakened 0.6 percent against the dollar to 78.02 after Japan’s central bank unexpectedly added 10 trillion yen ($128 billion) to an asset-purchase program and set an inflation goal.

To contact the reporter on this story: 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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