The euro rallied for a fourth week against the greenback, the longest streak since June, as European Central Bank President Mario Draghi refrained from adding to monetary stimulus.
The 17-nation currency strengthened versus most of its 16 major peers as Europe’s central bank’s stance outweighed labor and economic data in the U.S. that was stronger than forecast as traders bet the Federal Reserve will keep its benchmark interest rates unchanged even when it slows its bond-buying. The yen fell as the head of an advisory panel called on Japan’s Government Pension Investment Fund to start cutting domestic debt holdings. U.S. retail sales increased 0.6 percent in November, according to a Bloomberg survey before the Dec. 12 report.
“Even though Draghi seemed to me to be dovish, he didn’t appear to be in a hurry to provide more accommodation,” Marc Chandler, the New York-based chief currency strategist at Brown Brothers Harriman & Co., said in a telephone interview. “The markets believe what the Federal Reserve is saying, tapering isn’t tightening.”
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