The euro strengthened above $1.35 for the first time since December 2011 before a report forecast to show economic confidence in the region improved this month.
The 17-nation currency advanced for a second day against the dollar before the Federal Open Market Committee issues its policy statement today. An index of executive and consumer sentiment in the 17-nation euro area rose to 88.2 this month from 87 in December, the European Commission will say today, according to a Bloomberg News survey. South Korea’s won weakened as a government minister said the country should consider taxes on currency trading to limit “speculative” inflows of capital.
“The U.S. economy continues to be weak,” said Peter Dragicevich, a currency economist at Commonwealth Bank of Australia in Sydney. “That will just reinforce the perception in the market that the Fed’s asset purchases will continue for a while yet, and that will weaken the dollar.”
The euro gained 0.1 percent to $1.3509 at 7:39 a.m. London time after rising to $1.3515, the strongest since Dec. 2, 2011. The common currency advanced 0.4 percent to 122.89 yen. Japan’s currency dropped 0.3 percent to 90.96 per dollar.