Euro Erases Earlier Loss on Bets ECB Will Raise Interest Rates

The euro erased earlier losses versus the dollar and headed for a second quarterly gain on speculation Greece’s debt crisis won’t prevent the European Central Bank from raising interest rates next week.

Demand for the euro was limited amid protests in the streets of Athens before Greece’s parliament votes on an austerity package needed to secure more financial aid. The dollar was near a three-week high versus the yen after Treasury yields jumped yesterday, enhancing the allure of U.S. assets. South Korea’s won rose for a second day on speculation the central bank will boost interest rates after the government raised its inflation forecast.