The euro rose for a second day in Forex Trading on optimism a bailout for Ireland will prevent contagion in the region’s larger debt markets.
The shared currency strengthened versus 13 of its 16 major counterparts as European Union and International Monetary Fund officials travel to Dublin to discuss a possible aid package for Ireland’s banking sector while Spain prepared to sell bonds.
The dollar dropped against a basket of major currencies for a second day before a report forecast to show U.S. jobless claims gained.
The Taiwan dollar surged before data that may show the economy expanded more than 8 percent for a fourth quarter.
The euro advanced to 113.16 yen as of 12:33 p.m. in Tokyo from 112.55 yen in New York yesterday. The common currency advanced to $1.3590 from $1.3529. It reached $1.3448 on Nov. 16, the lowest level since Sept. 28.
The Dollar Index, which tracks the greenback against a basket of currencies, dropped 0.4 percent to 78.795. The U.S. currency traded at 83.27 yen from 83.18 yen, after touching 83.59 yen on Nov. 16, the strongest since Oct. 5.
The Irish government will hold talks with the EU, IMF and the European Central Bank across the capital “over a number of days,” a Finance Ministry spokesman said yesterday. Discussions will be held at the Irish central bank, the country’s bond agency and the Finance Ministry.
European policy makers will scan the books of Ireland’s debt-laden banks to determine whether the government can fix the banking system on its own or needs to fall back on the 750 billion-euro ($1 trillion) European Financial Stability Fund.