The euro strengthened the most in two weeks against the dollar after European Central Bank President Mario Draghi refrained from announcing any additional stimulus measures that tend to debase a currency.
The 18-nation currency reached a one-week high after Draghi said both upside and downside inflation risks remained limited. The dollar rose against the yen before a nonfarm payrolls report tomorrow that is forecast to show jobs growth rebounded in January. Australia’s dollar climbed to a three-week high after the nation reported an unexpected trade surplus. Hungary’s forint and Turkey’s lira advanced.
“You’ve got Draghi’s reiteration that he’ll support the economy and so there’s some positive reaction on euro-dollar,” Fabian Eliasson, head of U.S. currency sales in New York at Mizuho Financial Group Inc., said in a phone interview. “The market is anticipating payrolls to be a bit on the positive side.”