The dollar fell for a second day against the euro as Asian stocks advanced on speculation the worldwide economic recovery is building momentum, reducing demand for safer assets.
MSCI Asia Pacific Index of shares rose 0.3% and the Nikkei 225 Stock Average advanced 0.4%.
The number of people out of work in Germany fell 10,000 in January, after rising 3,000 in December, a separate survey showed before the data today.
“Worldwide growth is looking strong,” said Adam Carr, a senior economist in Sydney at ICAP Australia Ltd., a unit of the world’s largest interdealer broker. “This is likely to support risk appetite and weigh on the dollar and the yen while boosting the euro.”
The pound gained after the National Institute for Economic and Social Research predicted the U.K.’s benchmark rate would rise to 1.25% by year-end, compared with an October forecast of 0.75%. The institute increased its 2011 inflation forecast to 3.8% from 2.8%.
Australia’s dollar climbed after the central bank said there are signs of rising private investment in the nation.
Economists predict a U.S. report today will show manufacturing grew for an 18th month. The Institute for Supply Management’s factory index was 58 in January from an eight-month high of 58.5 in December. Readings above 50 signal growth.
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