Euro Rises as China Says Taken `Concrete Action' to Help Europe; Yen Gains

Wang Qishan, China's vice premier, speaks at the Third China - EU High Level Economic and Trade Dialogue in Beijing. Photographer: Nelson Ching/Bloomberg



The euro rose, ending a two-day decline, after China’s Vice Premier Wang Qishan said the nation had taken “concrete action” to help the European Union with its debt problems.

The single currency strengthened against 15 of its 16 major counterparts on speculation investments by China, which holds a record $2.65 trillion in foreign-exchange reserves, will ease Europe’s sovereign fiscal crisis and boost the allure of assets in the region. The yen gained for a second day versus the dollar on speculation Japanese exporters bought the currency to bring home funds before the end of the year.

“This is a Christmas present for the euro,” said Kurt Magnus, executive director of foreign-exchange sales at Nomura Holdings Inc. in Sydney. “There’s a lot of people looking to sell euro and go into 2011 with a core short position and there’s no way that you would be short euro if Asia is going to support Europe. So, this is a significant vote for the euro.”

The euro climbed to $1.3193 as of 11:30 a.m. in Tokyo from $1.3131 in New York yesterday, when it dropped to $1.3095, the lowest since Dec. 2. The common currency rose to 110.38 yen from 110 yen yesterday, when it fell to 109.58, the weakest since Dec. 7. The yen advanced to 83.67 per dollar from 83.77.

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