Forex: Monday's review

Japan’s currency rose from a three-month low against the euro as stocks fell in Europe and Asia. Libyan leader Muammar Qaddafi’s son Saif said the country may have a civil war. 
The euro dropped after German Chancellor Angela Merkel’s Christian Democratic Union suffered an election defeat in the country’s richest state, fuelling concern that European Union attempts to deal with the sovereign debt crisis will be derailed. 
Europe’s common currency pared losses after a report showed German business confidence unexpectedly rose to a record in February. The Munich-based Ifo institute said its business climate index increased to 111.2 from 110.3 in January. That’s the highest since records for a reunified Germany began in 1991. 
New Zealand’s dollar climbed on speculation Fonterra Cooperative Group Ltd. will raise its forecast for payouts to farmers.
The board of Auckland-based Fonterra, the world’s largest dairy exporter, meets tomorrow after whole milk powder prices climbed to a 31-month high. The dairy exporter raised its forecast payment to farmers by 4.5% on Dec. 10, citing higher international prices.