Euro rallied fresh two month high gainst dollar

With a surge in German yields and lessening fears of deflation in Europe, the euro rallied for a second session, climbing to a fresh two-month high against the dollar. Data this week suggesting the eurozone might be pulling out of deflation triggered a rise in Bund yields and shot the benchmark 10-year yield to 0.386%, up some 20 bps in two days. The euro has now clawed its way back from a 12-year low of $1.0457 in March, when the ECB launched its massive QE program. Euro +0.2% to $1.1244.