The 17-nation currency pared gains as Germany’s Chancellor Angela Merkel told reporters that debt turmoil can’t be resolved “in one step” at a July 21 summit and the International Monetary Fund said the Greek crisis risks infecting the rest of the euro region. The Canadian dollar advanced to an 11-week high after the central bank’s policy statement. President Barack Obama endorsed a deficit-cutting proposal by a bipartisan group of senators as “broadly consistent” with the approach being worked on by his administration.
“You’re seeing a little less adverse view about the outcome of the meeting on Thursday,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp., the world’s largest custodial bank, with more than $20 trillion in assets under administration. “There’s no question European leaders are doing everything they can to keep Greece in the euro zone.”
The euro rose 0.3 percent to $1.4156 at 2:12 p.m. in New York, from $1.4112 yesterday. The euro advanced 0.3 percent to 111.85 yen and strengthened 0.8 percent to 1.1636 Swiss francs after touching a record low 1.1374 yesterday. The yen was little changed at 79.01 per dollar.
The Canadian dollar appreciated as much as 1.2 percent to 94.82 versus the U.S. currency, the strongest level since May 3. The Bank of Canada kept its target rate for overnight loans between commercial banks at 1 percent and said borrowing costs will increase as the economy recovers. Policy makers dropped the word “eventually” to describe the timing of their next move.
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