The euro rose to the highest level this month as Asian stocks erased losses and lawmakers in Germany, the 17-nation region’s biggest economy, reached a coalition accord on wages and spending increases.
The Bloomberg U.S. Dollar Index held a loss from yesterday before figures that may show jobless claims increased and durable goods orders fell, while U.S. consumer sentiment improved, signaling a mixed recovery that may keep the Federal Reserve from reducing stimulus this year. The euro strengthened versus most of its 16 major counterparts amid speculation a report this week will show a pick up in inflation, reducing the need for the European Central Bank to expand monetary easing.
“The euro was boosted by the news that Germany is close to reaching a coalition accord and after the currency broke above key psychological level,” said Shinichiro Kadota, a foreign-exchange strategist at Barclays Plc in Tokyo. “I don’t think euro will extend gains much from here.”