The euro rose the most in three weeks against the dollar after
European leaders agreed to guarantee bank borrowing and prevent
failures that would disrupt credit markets.
The currency advanced
versus the greenback, snapping two days of losses, as leaders of the 15
countries using the euro meeting in Paris endorsed bailing out
``systemically'' critical banks in distress. The yen climbed against
the dollar as Asian stocks pared gains, adding to concern that Japanese
investors will sell higher-yielding overseas assets.
The euro rose
0.7 percent, the most since Sept. 22, to $1.3507 at 12:46 p.m. in
Tokyo, from $1.3408 late in New York on Oct. 10. It advanced 0.2
percent to 135.15 yen, from 134.96 at the end of last week. The dollar
declined 0.6 percent to 100.10 yen.
Foreign-exchange movements may
be exaggerated because trading volumes are lower than normal due to a
Japanese public holiday today, according to Yamamoto.
Europe's
single currency gained for the first day in three against the dollar as
European Central Bank President Jean- Claude Trichet said the ECB will
examine ways to widen its collateral rules after governments asked it
to set up a facility to buy commercial paper.
Gains in the euro
may be limited by speculation the European Central Bank will lower
borrowing costs to stimulate the economy, reducing the 15-nation
region's interest-rate advantage over the U.S. and Japan, according to
UBS AG.
The yen climbed as the MSCI Asia-Pacific Index of
regional shares excluding Japan trimmed its gain to 1.6 percent from as
much as 4.2 percent earlier in Asian trade.
EUR/USD
having established session low on $1.3455, the pair has become stronger
in area $1,3650 where it continues to be consolidated at present.
GBP/USD
having decreased in the beginning of the tenders up to a mark $1,6923,
in a consequence the pair has become stronger in area $1,7230.
USD/JPY having established a session low on Y99,50, the rate has risen above mark Y100,00.
Today is expected the publication only UK data - PPI 08:30 GMT.