The euro advanced against the dollar after a report showed German business confidence increased in May for the first time in three months, adding to signs that growth in Europe’s largest economy is gathering pace.
The Australian dollar reversed a decline against its U.S. equivalent to trade 0.1 percent stronger at 97.12 U.S. cents as of 11:59 a.m. London time.
The yen declined against the dollar, weakening 0.2 percent to 102.69 as of 7:38 a.m. London time.
Germany’s two-year notes declined for the first time in four days amid signs the global economic recovery is gathering pace, damping investor demand for the safest government assets.
The dollar strengthened before reports economists said will show manufacturing in the Philadelphia region expanded, while first-time jobless claims were near the lowest since January 2008.
The euro fell to a six-week low against the dollar after reports showed the region’s economy shrank more last quarter than analysts forecast and German growth cooled.
The pound erased an advance versus the euro to trade little changed at 84.55 pence as of 2:45 p.m. London time.
The euro declined against the dollar, dropping 0.2 percent to $1.2966 as of 8:32 a.m. London time. The 17-nation shared currency fell 0.3 percent to 131.64 yen.
Investors seeking mortgage bonds outside recession-plagued Europe are heading to Australia, the world’s fastest-growing major developed economy, boosting issuance to the highest in almost two years.
Treasury 10-year note yields reached the highest level in almost four weeks before the U.S. sells $24 billion of the securities today.