Euro Rises as Cyprus Seeks Alternatives to EU Plan
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The euro strengthened from a four-month low against the dollar as Cyprus sought alternatives to the European Union plan to help the nation avoid a banking collapse and the Federal Reserve maintained stimulus measures.
The dollar remained lower against the 17-nation currency after the Fed said it will continue buying $85 billion of bond per month to bolster the economy. The euro rose after the European Central Bank’s pledge to provide liquidity to Cyprus gave the nation time to renegotiate a financial rescue and on speculation that Russia may provide aid. The yen fell against a majority of its 16 most-traded after Nikkei reported without attribution that incoming Bank of Japan Governor Haruhiko Kuroda will pledge “bold” monetary easing.