The common currency of the European Union drove toward its two-week high against the monetary unit of Japan on Tuesday as speculation grew about the European Central Bank announcing later this week that it will purchase bonds of nations suffering under the duress of the sovereign debt crisis, according to Bloomberg.
The 17-nation currency also pushed toward its highest rate in two months against the U.S. dollar after a member of the European Parliament said on Monday that ECB president Mario Draghi informed lawmakers he is comfortable acquiring assets set to mature in about 36 months.
"There may be some short-covering of the euro amid growing expectations that the ECB will start a bond-buying program," foreign-exchange product group manager Akira Moroga with Aozora Bank Ltd. in Tokyo told Bloomberg.
The central bank's next policy meeting is scheduled for Thursday as the financial institution drives toward reining in the sovereign debt scourge.
Spanish and Italian government bond yields fell on Tuesday as the ECB pushed toward disclosing the bond-purchasing program at Thursday's meeting, Reuters reports.
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