Euro Rises Against Dollar as ECB Plans to Buy Covered Bonds

The euro advanced against the dollar after the European Central Bank said it will purchase covered bonds to lower borrowing costs and counter the economic slump.

The 16-nation currency also rose versus the yen after ECB President Jean-Claude Trichet said policy makers decided “in principle” to buy euro-denominated covered bonds. The bank cut the region’s benchmark interest rate by a quarter point to a record low of 1 percent today, matching the prediction of all 53 economists in a Bloomberg survey.  Read more about the European Central Bank…