Currencies

• EUR/USD The euro reached the strongest versus the dollar since January 2010 as traders boosted bets the European Central Bank will raise interest rates further after yesterday's increase. The ECB raised its benchmark rate to 1.25 percent from 1 percent; however more increases may follow until the end of the year, as hinted by ECB President Jean- Claude Trichet. The euro advanced to $1.4396 from $1.4308 as of 7:00 a.m. in London, after earlier climbing to $1.4404.


• JPY/EUR The yen extended a fourth weekly drop versus the euro as quickening growth elsewhere in the world contrasted with Japan's efforts to rebuild after last month's record earthquake. The yen declined to 122.41 per euro as of 6:18 a.m. in London from 121.49 yesterday in New York, after touching 122.64. It has depreciated 2.3 percent this week.


• CAD/USD Canada's dollar rose to almost the strongest level in more than three years against the U.S. dollar as crude oil, the Canada's largest export, traded at a 30-month high, raising the prospects of commodity-linked currencies. The Canadian currency rose 0.3 percent to 95.79 cents per U.S. dollar at 5 p.m. in Toronto, from 96.08 cents yesterday.

Commodities

GOLD climbed to a record high heading for the biggest weekly gain this year as concern over accelerating inflation, financial turmoil in Europe and fighting in Libya boosted demand for safe haven assets. The European Central Bank yesterday raised interest rates for the first time in almost three years to curb inflation in spite the fact euro region nations such as Greece and Portugal are facing financial turmoil. Immediate-delivery bullion strengthened as much as 0.6 percent to $1,466.10 an ounce before trading at $1,465.07 at midday in Singapore. June delivery in New York climbed as much as 0.6 percent to $1,467.50 an ounce, also a record.

OIL headed for a third week of gains in New York after climbing above $111 a barrel as a fire burned at Libya's Sarir field and on concern the conflict in other energy-exporting countries may spread. Futures advanced to a 30-month intraday high today after NATO said forces loyal to Muammar Qaddafi caused a fire at Sarir, Al Arabiya television reported. Crude for May delivery rose as much as 89 cents, or 0.8 percent, to $111.19 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $111.13 at 2:51 p.m. Sydney time.

Sources: Bloomberg, FT