Euro Reaches 14-Month High on Rate Bets; Stocks, Commodities Up
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The euro rallied to a 14-month high versus the dollar on bets the European Central Bank will raise interest rates, maintaining gains after Portugal asked for a bailout. Treasuries fell amid speculation the Federal Reserve will maintain stimulus measures.
The euro strengthened 0.8 percent to $1.4331 at 5 p.m. in New York, while the 10-year U.S. note yield increased seven basis points to 3.55 percent. The Standard & Poor’s 500 Index advanced 0.2 percent to 1,335.54 and Cisco Systems Inc. led the Dow Jones Industrial Average to an almost three-year high. Gold climbed to a record for a second day, rising as much as 0.8 percent to $1,463.70 an ounce. The S&P/GSCI Index of commodities rose 0.2 percent to the highest level since 2008.