Euro Climbs as IMF Studies $500 Billion Boost; Dollar Weakens

The euro gained for a second day versus the dollar and the yen as the International Monetary Fund proposed raising its lending capacity by as much as $500 billion to protect the global economy amid Europe’s debt turmoil.

The 17-nation currency rallied against most of its major peers as Greek officials resumed negotiations with bondholders. The dollar fell against the euro on reduced demand for a refuge as U.S. data showed a rebound in industrial production. Brazil’s real climbed as risk appetite improved, while the pound weakened against the euro as Britain’s unemployment rose.