Euro Gains for 2nd Day Versus Dollar on China, Greece
The euro extended yesterday’s advance against the dollar amid speculation that China will take more steps to boost economic growth, fueling demand for higher-yielding assets.
The 17-nation euro appreciated from within 0.2 percent of its lowest level since July 2010 after polls showed Greece’s pro-bailout parties gaining ground, damping concern the nation will exit the currency bloc. The Australian dollar strengthened against most of its 16 major peers tracked by Bloomberg.
“There’s enough there to check the down-leg in euro-dollar,” said Paul Robson, a senior foreign-exchange strategist at Royal Bank of Scotland Group Plc in London. There’s “a slightly more risk-positive take in the market with the Australian dollar rising and we’ve had news about possible fiscal stimulus out of China as well,” he said. Easing concern Greece may exit the currency bloc “probably reduces some of the tail risks for the euro,” he said.
The euro rose 0.1 percent to $1.2556 at 10:25 a.m. London time. It slid to $1.2496 on May 25, the lowest since July 6, 2010, and has lost 5.2 percent this month. The common European currency added 0.2 percent to 99.83 yen. The yen was little changed at 79.51 per dollar.
The Australian dollar strengthened 0.2 percent to 98.69 U.S. cents. It advanced most against the South Korean won and Japanese yen.
To contact the editor responsible for this story: Garfield Reynolds at firstname.lastname@example.org.