Euro Moves to Month-High above 1.31 on Spain Optimism Before Summit

The euro advanced to a one-month high on speculation Spain will move toward seeking financial assistance, helping contain Europe's debt crisis.

The 17-nation currency rose versus most major counterparts after Moody's Investors Service held Spain's credit rating at investment grade and as European Union leaders prepare for a summit in Brussels this week. The dollar slid against most of its major peers before data that may show new housing construction in the U.S. climbed last month, curbing demand for safer assets. Australia's currency reached a two-week high as Asian stocks extended gains in equities worldwide.

“The euro is rising amid speculation Spain will request a precautionary credit line,” said Masato Yanagiya, head of currency and money trading in New York at Sumitomo Mitsui Banking Corp. “Expectations are rising before the EU summit.”

via Bloomberg