The dollar weakened for a third day against the euro

The dollar weakened for a third day against the euro and fell against the yen before a report economists say will show U.S. employers added workers last month.

Europe's common currency erased its weekly loss against the dollar and the Bundesbank raised its 2010 growth forecast for Germany. Governments "must go as far as possible and be as effective as possible" to tackle the debt crisis, the European Central Bank President Jean-Claude Trichet said in Paris today, a day after leaders politicians have delayed his departure from the stimulus measures. The Norwegian krone rose against all but one of its 16 most actively traded peers after the national unemployment rate remained at its lowest level since May.

"A number of lists of good will for the history of risk and may be negative for the dollar," said Jeremy Stretch, executive director of foreign exchange strategy at the Canadian Imperial Bank of Commerce in London. "The history of risk has proved somewhat useful" for higher-yielding assets, he said.

The dollar depreciated 0.3 percent to $ 1.3254 per euro at 7:39 am in New York from $ 1.3209 yesterday and $ 1.3242 a week ago. It reached $ 1.2969 on 30 November, the strongest level since Sept. 15. Against the yen, the dollar weakened 0.2 percent, to 83.67 from 83.82. The euro was at 110.89 yen compared with 110.73 yen, down from 0.4 percent in the week.

Employment in the U.S. increased by 150,000 last month, according to the median forecast of 87 economists surveyed by us, which increased so far this year to 1.02 million euros. The unemployment rate probably held at 9.6 percent, according to the median of the survey.

Index dollar falls

The dollar index, which IntercontinentalExchange Inc. uses to track the dollar against the currencies of six U.S. trading partners, fell 0.3 percent to 80.042, falling for the third consecutive day.

The German gross domestic product will expand 3.6 percent in 2010, up 2 percent in 2011 and 1.5 percent in 2012, the central bank based in Frankfurt, said in its semiannual economic outlook today . In June, is expected to grow 1.9 percent this year and 1.4 percent next year, although in October, said the economy can expand "more than 3 percent" in 2010.

Norwegian Crown appreciated by 0.8 percent to 6.0400 per dollar and was 0.5 percent stronger against the euro at 8.0036.

The nation's unemployment rate was 2.7 percent in November, based in Oslo, Labour and Welfare on its website today. Analysts had forecast a 2.7 percent rate, according to the median estimate of six surveyed by us.

The concern of the debt crisis

Gains by the euro may be limited as some investors bet Trichet has not done enough to defuse the crisis in the region of the debt and that growth in Germany will not be repeated in the weakest countries in the euro area as austerity measures hinder its economic recovery.

While the central bank kept its refinancing rate at a record low of 1 percent and extended an emergency loan program to combat the "acute" stress in the markets, Trichet said at a news conference yesterday in Frankfurt that Policy makers kept additional liquidity remaining in their purchases of bonds, disappointing some traders had expected to start called quantitative easing.

"Trichet, swatting away the concerns of all saying not to worry no remedy in my book," said Neil Mellor, currency strategist in London at Bank of New York Mellon Corp., the world's largest custodian of financial assets. "Fundamentally nothing has changed. The benefit of the doubt should lie still in a weaker euro."

Standard & Poor's said Wednesday it may cut the credit rating of Greece as proposed European Union regulations threaten to hurt bondholders. long-term sovereign rating of Greece 'BB' was placed on "CreditWatch" with negative implications, S & P said in a statement.

South Korean won rose as investors raised overseas holdings of shares in the nation for the third consecutive day.

The won appreciated 0.9 percent to 1,138.55 per dollar, 1.9 percent in the week.