The euro approached a three-week high against the dollar after a German report showed retail sales increased for the first time in three months, adding to signs the 16-nation region is emerging from recession. The euro gained for the first time in six days versus the yen as the Federal Statistics Office in Wiesbaden said sales, adjusted for inflation and seasonal swings, rose 0.7 percent in July after a 1.3 percent drop in June.
Furthermore, European Central Bank Governing Council member Ewald Nowotny said yesterday he does not expect a double-dip recession in the euro region as long as policy makers do not hurry to remove emergency stimulus measures.
The yen fell against 12 of 16 major currencies after a Chinese report showed manufacturing expanded at the fastest pace in 16 months, spurring demand for emerging-market assets.
Europe's currency rose to $1.4361 as of 7:39 a.m. in London from $1.4334 in New York yesterday. It touched $1.4406 on Aug. 27, the strongest level since Aug. 7. The euro climbed to 133.66 yen from 133.48 yen. The dollar was at 93.08 yen from 93.12 yen.
Crude oil rose above $70 a barrel, reversing earlier losses, after a report showed manufacturing in China expanded in August, easing concern of an economic slump in the world's second-largest energy user. Crude oil for October delivery rose as much as 47 cents, or 0.7 percent, to $70.43 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $70.32 at 2:45 p.m. in Singapore. Futures earlier fell as much as 0.6 percent to $69.55.
