The euro rose for a second day as Spainâ€™s pledge to meet its deficit target spurred prospects it will qualify for an international rescue that will help stem Europeâ€™s debt crisis.
The 17-nation currency headed for a second weekly decline versus its U.S. counterpart before a report today that may confirm Franceâ€™s economy failed to grow for a third-straight quarter. Economists estimate that data next week will show euro- area manufacturing contracted and unemployment climbed to a record. The Australian dollar strengthened on speculation figures that may show stagnant Chinese manufacturing growth will widen the scope for the nation to add to stimulus measures.
â€œThere is little doubt that at some point Spain is going to have to ask for aid,â€ said Kymberly Martin, a markets strategist in Wellington at Bank of New Zealand Ltd. â€œThey are just trying to get as much of their own house in order so that they can negotiate the best condition for themselves. Itâ€™s genuinely well supported risk-appetite.â€