The euro fell to a more-than-three- month low against the dollar as German unemployment unexpectedly increased this month and euro-area lending contracted, boosting the case for more European Central Bank stimulus.
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.
The dollar ended the longest streak of losses since April after sales of U.S. homes rose by the most in 22 years, adding to signs of recovery from a harsh winter.
The euro fell for the first time in six weeks versus the dollar as reports showed the region’s economy struggling amid the debt crisis.
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 fell against most of its major counterparts after U.S. pending home sales unexpectedly rose in October and stocks and commodities gained, fueling investor appetite for riskier assets.