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The euro rose from a eight-month low versus the dollar after Federal Reserve Chairman Ben S. Bernanke said he’s ready to take additional steps to boost the economy, increasing bets the central bank may introduce further easing.
The 17-nation currency rose for the first time in three days against the greenback on speculation that the U.S. central bank may implement a third round of quantitative easing, which would debase its currency. The euro extended its gains and higher-yielding currencies rose as U.S. stocks erased losses. The Australian dollar declined to the least in more than a year versus the greenback after the Reserve Bank of Australia held its key rate at 4.75 percent.
The euro appreciated 1 percent to $1.3308 at 12:16 p.m. in New York, from $1.3176, after touching $1.3146, the weakest since Jan. 13. It rose 1.3 percent to 102.26 yen from 100.97 yen yesterday. It touched 100.76, the least since June 2001. The dollar rose 0.3 percent to 76.85 yen.
The euro traded at 27.9 on its 14-day relative strength index against the dollar, falling below 30 for a second day. It was at 29 on a similar index versus the yen. A reading below 30 signals that an asset may be due to reverse direction.
The franc fell against the euro amid speculation that the Swiss National Bank may adjust the cap set last month to further weaken the currency.
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