The dollar rose against most major U.S. competitors bond

The dollar rose against most major U.S. competitors bond yields made the biggest jump in nearly a year, prompting demand for U.S. currency.

The euro pared a five-day loss against the dollar on bets that Ireland will have a plan to rescue the financial crisis, preventing contagion between the debt markets in the region. The yen fell for a third straight week against its U.S. counterpart, the longest streak this year. The U.S. economy grew at an annual rate of 2.4 percent last quarter, data from next week may show.

"Yields have been very, very helpful in lifting sentiment towards the dollar," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group LLC in Greenwich, Connecticut. "Good economic data that will boost the dollar, increasing yields."

The dollar rose against 10 of its 16 most-traded counterparts. IntercontinentalExchange Inc. 's index of the dollar, which is used to track the currency against six major U.S. trading partners, including the euro and the yen rose for the second straight week in the first weekly increase in back-to -back "since August. He advanced 0.5 percent to 78,504 in New York.

The dollar rose 1.2 percent to ¥ 83.55 pm from 82.53 on 12 November and 83.79 yen reached on 18 November, the highest since Oct. 5. His last three weeks advance against the yen ended on 1 January.

The dollar rose 0.1 percent to $ 1.3673 per euro from $ 1.3691 on 12 November. It touched $ 1.3448 on 16 November, the highest level in seven weeks. The euro gained 1.1 percent to 114.23 yen, from 113.02 weeks ago.

U.S. Treasury Bonds fell, pushing yields and make the titles more attractive to investors.

The 10-year yields

The yields of the note reference to 10 years had the sharpest two-week increase in 11 months, 34 basis points as investors and world leaders questioned the effectiveness of the Federal Reserve plan to buy $ 600 billion in debt U.S. and June to promote employment and prevent deflation. A basis point is 0.01 percentage point. ten-year yields reached 2.96 percent on Nov. 16, the highest level in three months.

"The backup in yields surprising the U.S. is putting yen under pressure," wrote Calvin Tse, a currency strategist in London at Morgan Stanley in a research note on 18 November. "Dollar-yen has a very strong correlation with U.S. rates."

Irish Finance Minister Brian Lenihan November 18, said he would welcome the creation of "an important emergency capital funding" to Irish banks, fueling speculation that the country will accept a rescue plan. The nation had previously had no need for a rescue.

"Tens of thousands of millions"

Officials of the European Union, International Monetary Fund and European Central Bank began to study the books of Irish banks on 18 November. Ireland's central bank governor, Patrick Honohan, said that day that he expected the country in search of a package worth "tens of billions" of euros to help bailout the companies battered by the slump in U.S. housing .

"The rescue of Ireland seems imminent," said John Doyle, a strategist at the firm in Washington currency trading at Tempus Consulting Inc. "If it is too small, the markets could react negatively."

Lenihan is due to publish details of a period of four years, 15 million euros ($ 20 billion) plan to reduce the budget deficit this month and its 2011 budget on December 7.

The currencies of commodity exporting countries, including New Zealand, Mexico, Brazil and Australia, rose against most of its major counterparts as the prospects of a crisis in Europe's sovereign debt to facilitate fueled investors' appetite for risk .

Reserves of the Bank of China

Their gains were moderate, after China ordered banks to set the largest reserves set aside for the fifth time this year, to drain money from the financial system to curb inflation. The reserve ratio increased 50 basis points from November 29, the central bank said on its website. The aim is to strengthen liquidity management and "adequate control" of credit and loans, he said.

The dollar rose as a report this week showed that manufacturing expanded Philadelphia area. general economic index of the Philadelphia Fed rose to a reading of 22.5, more than four time.

Other data showed U.S. consumer prices excluding food and fuel, a measure for central banks, increased 0.6 percent in October from a year earlier, the smallest increase in data from the year-over-year going back to 1958.

Fed chairman, Ben S. Bernanke defended the central bank's plan U.S. quantitative easing, which announced November 3 and began to give effect to the purchases from last week. He said in a speech in Frankfurt the effort will help the economy.

"Significant uncertainty"

The program drew criticism in the U.S. and abroad. German Finance Minister, Wolfgang Schaeuble, suggests that it is designed to erode the U.S. dollar, and Republicans in Congress four top wrote Bernanke this week expressing concern that "introduces a significant uncertainty about the future strength the dollar. "

Bernanke said yesterday in Frankfurt that the best way to support the dollar and the global recovery support is through policies that lead to the resumption of robust growth in an environment of price stability in the United States. "

The Commerce Department will report next week that the U.S. economy grew at a rate of 2.4 percent per year in the third quarter, according to the median forecast. Data, November 23, is a revision of an estimate in October, said the gross domestic product grew 2 percent compared to 1.7 percent in the second quarter and 3.7 percent in the first.