The euro weakened to the lowest in more than 11 years against the yen as investors sought safer assets amid mounting concern that European leaders are failing to control the region’s debt crisis.
The dollar climbed to the highest in almost two months after a private-sector report showed U.S. manufacturing rose last month, adding to signals the world’s biggest economy is improving.
Australia’s dollar advanced against a majority of its 16 most-traded counterparts as stocks rallied, supporting demand for higher-yielding assets.
The Australian dollar rose above parity with the U.S. currency for the first time in three weeks after China cut its key interest rates, fueling appetite for riskier assets.
The dollar rose to a six-month high against the yen as an unexpected drop in U.S. jobless claims and a rise in leading economic indicators added to speculation the Federal Reserve may start reducing stimulus next month.