Euro Set for First Weekly Gain in a Month on Rate Bets, Greece Austerity

The euro advanced versus the dollar for a fifth day as traders increased bets the European Central Bank will tighten monetary policy and Greece progressed in staving off a default.

The euro headed for a weekly advance against 12 of its 16 major peers after Greek Prime Minister George Papandreou won approval to implement an austerity plan needed to keep aid flowing to his nation. The Dollar Index was was set for its biggest weekly decline since January before a report forecast to show U.S. manufacturing growth slowed in May. The New Zealand dollar weakened on dimmer prospects for exports after a Chinese manufacturing index fell.

http://www.bloomberg.com/news/2011-07-01/dollar-advances-on-outlook-for-u-s-economy-aussie-drops-on-china-data.html