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Euro Rises After EU Leaders Renounce Spain Loan Seniority

The euro surged the most this year against the dollar after European leaders eased terms on loans to Spanish banks, taking a step toward resolving the region’s debt crisis and boosting demand for the shared currency.

The 17-nation euro posted its biggest gain in eight months versus the yen as European Union President Herman Van Rompuy said officials meeting in Brussels agreed to drop the condition that emergency loans to Spanish banks give creditor governments preferred status. The Australian and New Zealand dollars advanced as stock gains boosted demand for higher-yielding assets.