Euro Strengthens on ECB Lending Offer, Merkel, Sarkozy Backing
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The euro rose against the dollar for the first time in three weeks after the European Central Bank said it will lend dollars to euro-area banks, tempering liquidity concern amid the region’s sovereign debt crisis.
The 17-nation currency pared its five-day gain yesterday as finance ministers from euro-zone nations meeting in Poland failed to inspire confidence in measures to control debt problems. Canada’s dollar rose against all of its most-traded counterparts on speculation the nation’s fiscal condition will attract investors during market turmoil. The Dollar Index fell before a Federal Reserve meeting next week where officials may announce further economic stimulus.