Euro rises in Asia

The euro rose against the dollar on Friday, nearing a two-month high hit earlier this week, and traders said the currency may see more gains in the near-term after a recent improvement in sentiment. Traders say successful bond sales from highly indebted countries, including Portugal and Spain, and expectations of a strengthened eurozone rescue fund, are lending the euro support.
The single currency rose 0.1 percent to $1.3486, nearing a two-month high of $1.3539 hit on Wednesday on trading platform EBS. A near-term focal point for the euro, which has climbed roughly 5 percent from a trough hit earlier in January, is whether it manages to finish the day above resistance at $1.3510, the top of the weekly ichimoku cloud.
Such a close to the week could open the way for the euro to test further peaks in the near-term, market players say. "The euro may rise to around $1.37 to $1.38," said a trader for a Japanese bank in Tokyo. Still, traders say worries about deep-seated fiscal problems among highly-indebted euro zone countries could come back to haunt the euro.
Traders said a bounce in Chinese equities also helped bolster the euro as well as the Australian dollar. Market players focus on moves in Chinese equities as a gauge of investor risk appetite, and gains in Chinese shares tend to give a lift to currencies such as the Australian dollar and the euro. The Australian dollar regained some ground after dipping to as low as $0.9839 earlier. It was still 0.1 percent lower on the day at $0.9860.
Commodity currencies like the Australian dollar had come under pressure on Thursday after strong Chinese data renewed worries the world's second biggest economy could take a tougher stance on fighting inflation this year, and ultimately slow its demand for commodities.
A focal point for the euro later on Friday will be the German Ifo business sentiment survey, which is forecast to be stable in January, taking a breather after rising steadily since September. The dollar dipped 0.1 percent against the yen to 82.94 yen.