By Bo Nielsen Oct. 8 (Bloomberg) -- The euro climbed to the highest level in two weeks against the dollar as European Central Bank President Jean-Claude Trichet said the region’s labor market may deteriorate less than forecast as the economy recovers. The single currency also advanced versus the yen after Trichet said the 16-nation economy is “stabilizing.” The ECB left its main refinancing rate at a record low of 1 percent today. The Dollar Index approached its weakest level in 14 months after Alcoa Inc. reported third-quarter earnings that beat analysts’ estimates, fanning gains for stocks. The pound rose to the highest level this month after the Bank of England said its asset-purchase program would stay under review. Trichet’s message “is mixed but the market wants to focus on the positive side for the euro,” said Antje Praefcke, a currency strategist at Commerzbank AG in Frankfurt. The euro rose to $1.4754 at 1:47 p.m. in London, from $1.4691 in New York yesterday. It earlier traded at $1.4787, the highest level since Sept. 24. The euro also rose to 130.54 yen, from 130.18 yen. The dollar was at 88.44 yen from 88.61 yen.

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