The euro climbed for the first time in three days versus the dollar as European stocks rose. Emerging-market currencies weakened and gold fell on the outlook for Federal Reserve stimulus and as a typhoon wreaked damage in the Philippines. U.S. shares rose to trade near a record.
The pound fell to a two-month low against the dollar after a government report showed U.K. inflation slowed more in October than economists forecast, damping bets the central bank will raise interest rates.
The yen fell against all of its 16 most-traded counterparts as risk appetite increased amid speculation that U.S. lawmakers will reach an agreement to avert a default, curbing demand for Japan’s currency as a refuge.
The euro may fall below $1.20 for the first time in almost two years as concern that Spain is struggling with its finances adds to bets Europe’s debt crisis will worsen, Brown Brothers Harriman & Co.’s Marc Chandler said.