The ZEW Center for European Economic Research said its index of German investor expectations increased instead of falling to a 15-year low as forecast. Traders pared bets on the European Central Bank cutting interest rates to bolster economic growth. The Japanese yen declined against 13 of the 16 most-active currencies as stock markets in Europe advanced.
The euro climbed to 155.75 yen as of 7:29 a.m. in New York, from 155.30 yesterday. It rose to $1.4533, after earlier declining to $1.4496, from $1.4519. Against the dollar, the Japanese currency traded at 107.17 from 106.96.
The euro also strengthened against the South African rand, rising 0.4 percent to 11.31 rand. The single currency also advanced to 74.62 British pence after a government report showed U.K. inflation was lower than forecast, before trading at 74.46 pence, from 74.41 yesterday.
U.K. consumer prices climbed 2.2 percent from a year earlier in January. Economists had predicted 2.3 percent, according to a Bloomberg News survey. The U.K. currency declined as much as 0.3 percent to $1.9494, and was little changed at $1.9504.
The ZEW's index rose to minus 39.5 this month from a 15-year low of minus 41.6 in January. Economists expected a drop to minus 45, the median of 32 forecasts in a Bloomberg survey showed.
The euro fell 2 percent against the dollar last week, its biggest decline since the period through June 9, 2006, and investors raised wagers on rate cuts after central bank President Jean-Claude Trichet highlighted downside risks to economic growth.