The euro rose for the first time in three days against the dollar as concern eased that Italy’s election deadlock would deepen Europe’s debt crisis and Federal Reserve Chairman Ben S. Bernanke said the bank’s stimulus policies are working.
The 17-nation currency climbed from almost a seven-week low yesterday as a report showed economic confidence in the region improved this month. The yen declined versus the majority of its 16 most-traded peers before Prime Minister Shinzo Abe submits his nomination for the next Bank of Japan (8301) governor tomorrow. The Dollar Index fell for the first time in six days as Bernanke concluded two days of congressional testimony in Washington.
“The Italian auction was seen as being relatively positive by the market,” Eric Viloria, a senior currency strategist at Gain Capital Group LLC in New York, said in a telephone interview. “Bernanke’s comments didn’t have much of an impact because they don’t really stray much from what he said yesterday.”