European session: The euro strengthened
The euro strengthened against most of its major peers amid speculation data today will show the U.S. job market is improving, bolstering optimism about the global economy after German figures showed rising exports.
The dollar declined for a third straight day against the European single currency.
The yen fluctuated between gains and losses as Moody’s Investors Service said the outlook for Japan’s sovereign credit rating was stable.
German exports rose 0.5 percent from November, a second month of gains, the Federal Statistics Office said today. Economists had forecast an increase of 1 percent, according to the median of estimates in a survey.
Losses by the dollar were tempered before Federal Reserve Chairman Ben S. Bernanke testifies today at a hearing of the House Budget Committee.
“Bernanke is likely to emphasize fiscal tightening,” analysts led by Hans-Guenter Redeker, London-based global head of foreign-exchange strategy at BNP Paribas SA, wrote yesterday. “While this would normally be negative for a currency, it will prove positive for the dollar in this case, given concerns over sovereign risk.”