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The euro advanced from a one-month low versus the dollar after Standard & Poor’s clarified that France’s credit rating remains AAA, easing concern that a crisis was imminent in the region’s second-largest economy.
The 17-nation currency advanced earlier versus most major peers after Italy drew double the bids for the amount on offer at a bill sale, damping bets the nation will face a challenge funding itself. Greece chose an interim prime minister. Europe’s shared currency rallied from little-changed as S&P said a message was erroneously sent to some of its subscribers suggesting France’s top-notch credit rating had been lowered. It affirmed the country’s AAA rating.
The euro gained earlier as Italy sold 5 billion euros ($6.8 billion) of bills to yield 6.087 percent, compared with 3.57 percent the last time it auctioned 12-month securities on Oct. 11, and European Central Bank was said to have bought Italy’s government bonds. Demand at the auction was 1.99 times the amount on offer.
Lucas Papademos, a former vice president of the ECB, was chosen to lead a new Greek unity government, paving the way for a coalition charged with securing additional financing to avert the country’s economic collapse. Papademos, 64, steered the country into the euro region as central bank governor more than a decade ago. He has never held elective office.
The Dollar Index declined 0.5 percent to 77.543 on reduced demand for a refuge after a report showed the number of Americans filing applications for unemployment benefits fell to the lowest level in seven months.
EUR/USD: the pair restored and closed day growth on a figure.
GBP/USD: the pair has fallen having lost two figures.
USD/JPY: the pair was under pressure.
On Friday US bond and forex markets closed for the Veterans' Day holiday - although equity markets are open. UK data is up at 0930GMT, with the release of third quarter construction output numbers and October producer price data. The limited US data is released at 1455GMT, with the release of the Nov Consumer Sentiment (UM) numbers. The Michigan Sentiment Index is expected to rise to a reading of 62.0 in early-November.
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