Euro Heads for Weekly Gain on Europe Debt Efforts; Pound Rises

The euro headed for a weekly gain versus the dollar, snapping two weeks of losses, on speculation financial support for European banks will help stem the region’s debt crisis.

The 17-nation currency was poised for its first weekly advance in a month versus the Swiss franc after the European Central Bank said yesterday it will reintroduce yearlong loans and resume purchases of covered bonds to encourage lending. The pound rose on optimism the Bank of England’s decision to reactivate its bond-purchase program will help revive the U.K.’s faltering economy. The Dollar Index pared a decline before the U.S. Labor Department releases its monthly jobs data.