Euro heads for biggest weekly advance in two months

Cutting Estimates

Adidas AG, the world’s second-largest sporting-goods maker, reduced the low end of its profit forecast yesterday, partly because of the strength of the euro, which has caused analysts to cut profit estimates in recent weeks.

Germany will hold federal elections on Sunday. An INSA opinion poll published yesterday showed both the opposition Social Democrats and Angela Merkel’s Christian Democratic-led group will fall short of a majority with their preferred coalition partners.

The euro may weaken if the anti-euro Alliance for Germany party reaches the 5% threshold of the national vote needed to win parliamentary seats, according to Thomas Kressin, head of European foreign exchange at Pacific Investment Management Co. in Munich.

The New Zealand dollar headed for a third weekly gain, extending its advance since the Reserve Bank said on Sept. 12 that interest-rate increases may be required next year from the all-time low of 2.5% as inflation picks up.

The kiwi rose 0.2% to 83.93 U.S cents after climbing to 84.36 yesterday, the strongest since May 9. It has strengthened 3.2% this week.

Krone Slides

Norway’s krone dropped 1% to 7.9671 per euro and declined 0.9% to 5.8855 per dollar.

The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies excluding the yen, climbed 0.7% this week to 116.05, the biggest increase since the period ended Sept. 14, 2012.

Malaysia’s ringgit led the advance as the Fed’s decision fueled demand for emerging-market assets.

The ringgit strengthened 4% this week to 3.1652 per dollar, The Thai baht appreciated 2.9% to 30.966, and the Indonesian rupiah rallied 0.5% to 11,350.

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