RTTNews - The euro gained on other majors on Wednesday in New York as rising global stocks increased the appeal of higher-yielding currencies. With the rally, the common currency reached its best level in more than a week against both the yen and dollar.

Traders mulled over a slew of economic reports around the globe. Euro area annual inflation turned negative for the first time on record in June, the Eurostat confirmed Wednesday.

Also on Wednesday, the Bank of Japan retained its key interest rate, while at the same time extended its special funding measures for three months to facilitate corporate financing.

The euro rallied to a two-week high near 1.4000 against the dollar. The rally took the European currency above a recent trading range.

The U.S. Labor Department revealed that consumer prices climbed 0.7 percent in June compared to the previous month. Economists had projected an advance of about 0.6 percent.

The euro jumped to a nine-day high of 132.91 versus the Japanese yen. The European currency has been trending higher since hitting a seven-week low of 126.99 last week.

The Bank of Japan unanimously voted to hold the uncollateralized overnight call rate at 0.1% as expected. The last change in rate was a 0.10% cut in interest rates at the bank's December 2008 meeting.

The euro edged modestly higher against the pound, reaching 0.8590 in the early afternoon. Earlier in the week, the European currency reached a five-week high of 0.8698.

The U.K. seems to be well ahead of the U.S. and most Euroarea governments in the field of providing banks capital and disclosing their real situation, Adam Posen, the newest member of the Bank of England's Monetary Policy Committee said Treasury Committee on Tuesday. His will join as MPC member in September.

A final report from the statistical office showed Eurozone consumer price index or CPI dropped 0.1% year-on-year in June after remaining flat in May. A year earlier, inflation was 4%. On a monthly basis, consumer prices rose 0.2% in June.

Italian statistical office Istat said the consumer price index or CPI including tobacco rose 0.5% year-on-year in June, unchanged from the preliminary estimate released on June 30. On a monthly basis, consumer prices were up 0.1%.

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