Euro climbs on positive German data

In early London deals, the shared eurozone unit climbed to US$1.3536 from US$1.3472 in New York late yesterday.

The dollar fell to 82.87 yen from 82.98 yen yesterday.

German business confidence began the new year at record highs, the Ifo institute said Friday, good news for the 17-nation eurozone as it grapples with a deep seated debt crisis.

Ifo's closely tracked reading of business sentiment climbed to 110.3 points in January from 109.8 points in December, its eighth consecutive increase and its second straight record high since the country's reunification in 1990.

The euro had fallen against the dollar in Asian deals despite signs that eurozone leaders may be preparing a comprehensive response to the sovereign-debt crisis that has roiled markets.

The European currency union, which is facing sovereign-credit downgrades and economic turmoil in its most vulnerable countries, could announce a troubleshooting plan within weeks, analysts said.

The euro on Thursday came under pressure after stronger-than-expected US housing and employment data, David Watt, a senior currency strategist at RBC Capital Markets, told Dow Jones Newswires.

In London this morning, the euro changed hands at US$1.3536 against US$1.3472 in New York late yesterday, at 112.18 yen (111.79), GBP0.8516 (0.8468) and 1.3038 Swiss francs (1.3028).

The dollar stood at 82.87 yen (82.98) and 0.9632 Swiss francs (0.9669).

The pound was at US$1.5894 (1.5906).

On the London Bullion Market, the price of gold fell to US$1,344.03 an ounce from US$1,345.50 late yesterday.