The pound reached the strongest in a week against the dollar before an industry report tomorrow that economists said will show retail sales increased in January, adding to evidence the recovery is gaining momentum.
The European Central Bank is unlikely to accept any default-rated Greek bonds as collateral, and thus the French proposal to roll over Greek securities announced last week will probably be withdrawn, according to Commerzbank AG.
Ukraine’s hryvnia may slide at least 20 percent against the dollar as the International Monetary Fund pushes the country to accept greater exchange-rate flexibility and banks and businesses convert a backlog of the currency, according to Commerzbank AG.
The euro rose against the dollar, extending a gain from last week, amid optimism Europe’s leaders meeting this week will signal support for Greece and outline fresh measures to combat the region’s debt crisis.
The Federal Reserve’s mixed messages on monetary policy are stoking volatility in the $4 trillion-a- day currency market, raising the odds that companies will have a harder time setting up exchange-rate hedges designed to protect overseas earnings.
The pound rose for the first time in three days against the dollar after an industry report showed the number of U.K. business insolvencies slid in September, boosting optimism the economic recovery is strengthening.