LONDON Dec 19 The euro extended gains on
Wednesday to hit a 16-month high against the yen and a 7-1/2
month peak versus the dollar bolstered by slightly better German
business confidence data.
The euro's gains pushed the dollar index to its
lowest in two months. The dollar also fell to a 7-1/2 month low
against the Swiss franc of 0.9107 francs.
The euro rose to 111.93 yen as long term investors
and speculators bought the single currency before the year end
and sold the Japanese yen on expectations that the Bank of Japan
will ease monetary policy aggressively in coming months.
The euro hit a high of $1.3273 against the dollar as
tentative signs of progress in U.S. budget talks also helped
improve market sentiment.