The euro hit a fresh two-month high on Monday as hopes for a durable solution for the euro-zone debt crisis pushed the currency past key technical levels, while stocks rose on bets of higher growth in the global economy, according to Reuters. Prices of copper and other metals rose as the optimism about growth triggered worries about supply constraints, driving up shares of miners and natural resources companies. The euro ran as high as $1.3660 on trading platform EBS, a fresh two-month high against the dollar. It last traded up 0.27 percent at $1.365. The European single currency has gained nearly 6 percent from this year's low on hopes the euro zone is on track to find a durable solution to its debt crisis. Speculation that the European Central Bank might raise interest rates also provided support for the euro. Some analysts feared, however, that the rally was close to an end as political turmoil in Ireland was a reminder of the uncertainties plaguing the most indebted European countries. "The euro's had a sharp rebound recently, but we think it's nearing its top in the bigger picture," said Ian Stannard, senior currency strategist at BNP Paribas. "It's supported in the near-term by optimism over talks on the European rescue fund, but political problems in Ireland and Portugal show there are still lots of factors out there to hurt the currency," he added. The U.S. dollar slipped 0.31 percent against a basket of major currencies, according to the U.S. Dollar Index. Against the Japanese yen, it fell 0.16 percent to 82.45. STOCKS EXTEND GAINS Global equities advanced as U.S. stocks found strength in large-cap technology and natural resources shares, which were lifted by bets on global growth prospects and Intel's gains. World shares as measured by the MSCI All-Country World Index rose 0.6 percent, while the FTSEurofirst 300 index of top European shares added 0.3 percent to close at 1,151.18, supported by gains in mining stocks. The Dow Jones industrial average extended its rally after eight weeks of gains, rising 87 points, or 0.73 percent, to 11,958.84. The Standard & Poor's 500 Index gained 6.76 points, or 0.53 percent, to 1,290.11, and the Nasdaq Composite Indexadded 25.87 points, or almost 1 percent, to 2,715.41. Intel Corp raised its dividend by 15 percent and authorized another $10 billion for stock repurchases, putting the spotlight on larger tech companies with slower growth. Intel's stock was up 1.61 percent at $21.16 and buoyed the major U.S. stock indexes. Climbing copper prices and tin prices rising to all-time highs reflected concerns over supply constraints and buoyed materials companies' stocks. "It's very difficult to ignore the positive implications for earnings in material stocks when the global economy is gaining traction," said Howard Ward, portfolio manager of the GAMCO Growth Fund in Rye, New York. U.S. crude oil prices fell $1.38, or 1.55 percent, to $87.73 per barrel in choppy trading, even as heating oil futures were lifted by U.S. cold weather. Still weighing on oil prices was last week's U.S. data showing an increase in oil inventories against forecasts for lower stockpiles. Investors also were cautious before the U.S. Federal Reserve's first monetary policy meeting this year on Tuesday and Wednesday. Prices of U.S. Treasuries were flat to slightly higher as traders made adjustments in advance of upcoming supply and the Fed's meeting. The benchmark 10-year note was up 5/32 in price, with the yield at 3.389 percent. The Fed is expected to buy $29 billion in U.S. debt, buying Treasuries on four of five trading days this week. It will also issue a policy statement on Wednesday after its meeting.
