The euro rose against the dollar and erased losses versus the yen as technical indicators showed the common currency’s drop over the past month was overdone. The euro gained for the first time in three days against the greenback as its 14-day stochastic oscillator chart declined to about 6 today, below the level of 20 that signals an asset’s price is poised to reverse course. South Korea’s won rose from near a two-month low after government data showed increasing exports and slowing inflation, bolstering optimism for the Asian economy’s outlook amid a deepening debt crisis in Europe. “It’s position adjustment,” said Cliff Tan, head of emerging-market currency research at Societe Generale SA in Hong Kong. “More fundamentally and from a medium-term perspective, most risk assets are trading that this particular episode of the European sovereign debt scare is going to be a somewhat moderated version of what we saw in May and June.” Europe’s currency rose to $1.3015 as of 1:30 p.m. in Tokyo from $1.2983 in New York yesterday. It fell 6.3 percent versus the greenback in the past month, the most among its 16 major peers. The euro traded at 108.66 yen after falling as low as 108.42 yen and from 108.65 yen yesterday. The dollar slipped to 83.48 yen from 83.69 yen. The won rose 0.1 percent to 1,158.46 per dollar, after completing its biggest monthly loss since May. The currency reached 1,172.50 on Nov. 24, the weakest since Sept. 9. To contact the reporters on this story: Monami Yui in Tokyo at myui1@bloomberg.net; Ron Harui in Tokyo at rharui@bloomberg.net. To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.

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