Euro Rises After European Central Bank Extends Loans, Bond Buys
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The euro strengthened against the dollar and yen on speculation a reintroduction of loans to banks by the European Central Bank will buoy crisis-ridden markets.
The 17-nation currency weakened earlier as ECB President Jean-Claude Trichet said the region’s economy is facing “intensified downside risks.” The pound fell after the Bank of England unexpectedly expanded its bond-purchase plan. Brazil’s real surged after inflation rose more than forecast, raising bets the central bank may slow the pace of interest-rate cuts.