The 18-nation euro strengthened after failing to break through the $1.24 level, pushing the shared currency up from almost a two-year low reached as the European Central Bank considers increased monetary stimulus.
The yen rallied from almost a seven-year low against the dollar as Bank of Japan Governor Haruhiko Kuroda said the economy is headed to achieve policy makers’ 2 percent inflation target. The U.S. currency reached the strongest level in more than five years after a report showed the U.S. economy grew at a faster pace than forecast in the third quarter. Norway’s krone slipped as crude-oil futures traded at almost a four-year low.
“It’s covering existing dollar longs, we’re in the holiday week here, and as a result you can have a period of low liquidity,” said Brian Daingerfield, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut. A long position is a bet that an asset will increase in value.