Euro Strengthens Versus Major Peers as Emerging Currencies Drop

The euro rose against the dollar for the first time in three days amid speculation last week’s drop to the lowest level in almost two months was excessive.

Emerging-market currencies fell after a typhoon swept across the Philippines and as traders weigh the likelihood of reduced Federal Reserve stimulus. The 17-nation shared currency pared a decline from last week, when a report showed the U.S. economy added more jobs in October than analysts forecast and the European Central Bank unexpectedly trimmed its key interest rate. Brazil’s real declined to a two-month low on concern the nation’s budget deficit will lead to a credit-rating downgrade.

The euro climbed 0.3 percent to $1.3407 at 5 p.m. New York time after dropping to $1.3296 on Nov. 7, the lowest level since Sept. 16. The 17-nation currency added 0.4 percent to 132.94 yen. The dollar gained 0.1 percent to 99.16 yen.

The Bloomberg U.S. Dollar Index (PCOMP), which tracks the greenback against 10 major currencies, was little changed at 1,020.88 after rising to 1,024.31 on Nov. 8, the highest since Sept. 13.

(Source: Bloomberg)