Euro Climbs as Inflation Data Damps ECB Speculation

Bloomberg (28/11) -- The euro rose to a four-year high against the yen as annual inflation in Germany accelerated in November more than economists forecast, damping bets the European Central Bank will further loosen monetary policy.

The shared currency climbed for a third day against the dollar as separate reports showed consumer-price growth in the German states of Saxony and North Rhine-Westphalia increased for the first time in five months. The ECB cut its benchmark interest rate this month after inflation in the currency bloc slowed to a four-year low in October. The pound rose for a third day versus the dollar as Bank of England Governor Mark Carney said the central bank will end incentives for mortgage lending. The euro climbed 0.3 percent to 139.08 yen at 2:52 p.m. in Toronto after advancing to 139.18, the highest since June 2009. The shared currency added 0.2 percent to $1.3603. The dollar rose 0.1 percent to 102.24 yen after touching 102.37, the strongest level since May 29. U.S. financial markets are shut today for a public holiday.