The euro gained against the yen and dollar as Spain sold more than its maximum target at a bill sale and a gauge of German business confidence rose more than expected, allaying concern the euro crisis is spreading.
Spain sold 3.18 billion euros of bills, compared with a maximum target of 3 billion euros the Treasury set for the sale. The ZEW Center for European Economic Research’s index of German investor and analyst expectations increased to 23.4 from 22.3 in March. China’s yuan rose as improving U.S. economic data boosted the nation’s export outlook.
The shared currency was 0.5 percent stronger at 106.23 yen at 10:05 a.m. London time after earlier declining as much as 0.4 percent. It advanced 0.2 percent to $1.3162, after weakening as much as 0.4 percent. The U.S. dollar climbed 0.4 percent to 80.69 yen.
The average 12-month yield at the Spanish sale was 2.623 percent, compared with 1.418 percent at the last auction on March 20, the Bank of Spain said in Madrid today. The Treasury also sold 18-month bills. Demand for the 12-month bills was 2.9 times the amount sold, compared with 2.14 times last month.
The ZEW gauge, which aims to predict economic developments six months in advance, rose to the highest since June 2010. Economists forecast a drop to 19, according to the median of 39 estimates in a Bloomberg News survey.
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