Euro Advances Most Since February as Officials Promise Support


28/07/2012 08:14 AST  Bloomberg

The euro had the biggest weekly gain versus the dollar since February as European Central Bank officials and national leaders pledged to support the shared currency mid surging sovereign-bond yields and concern the region’s financial crisis is worsening.

The dollar dropped against most major peers as a government report showed U.S. economic growth slowed in the second quarter and the Federal Reserve prepared to meet next week. The ECB and Bank of England will also meet next week. The South African rand and New Zealand dollar climbed as risk appetite increased and stocks rallied.

“The euro has done quite well this week,” Shaun Osborne, chief currency strategist at Toronto-Dominion Bank (TD)’s TD Securities unit in Toronto, said in a telephone interview. “Yields running up in Italy and Spain prompted the ECB to be a little bit more proactive in their management of this issue.”

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