Euro Rises After Ifo Survey

The euro rose to a three-week high against the dollar after a private report showed German business confidence unexpectedly strengthened for a second month., Bloomberg 2/26/2008 6:54:42 AM

The euro rose versus 10 of the 16 most-actively traded currencies as traders pared bets the European Central Bank will lower interest rates this year. The dollar fell against the common currency and Japanese yen before a report economists said may show U.S. consumer confidence dropped to a four-year low as the labor market weakens.

The euro was at $1.4878 by 7:08 a.m. in New York, the highest since Feb. 1, from $1.4830 yesterday. It advanced to a six-week high against the yen at 160.64 from 160.27. The dollar weakened 0.1 percent to 107.97 yen.

The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, rose to 104.1 in February, from 103.4 in January. Economists had forecast a drop to 102.9, the median of 45 estimates in a Bloomberg News survey showed.

The euro earlier fell after government reports showed today the German economy, Europe's largest, is losing momentum. Consumer spending fell for the first time in three quarters in the three months through December and export growth slowed.

Euro Rises After Ifo Survey