RTTNews - The euro rallied sharply against the lower-yielding dollar and yen amid increasing risk appetite stocks surging around the world. On the other hand, the common currency fell to a multi-month low against the surging pound.

The euro continued its rise against the slumping dollar and extended a five-month high to 1.6456. The common currency has been trending higher for about 10 days and has gained about 20 cents in the surge.

In the U.S., beleaguered automaker General Motors (GM) said that it has filed for bankruptcy under Chapter 11, as widely expected.

A Commerce Department report showed that personal income increased by 0.5 percent in April following a revised 0.2 percent decrease in March. Personal spending edged down 0.1 percent in April after falling by a revised 0.3 percent in the previous month.

The euro climbed to an eight-week high of 137.24 versus the Japanese yen. If the European currency gets above the 137.40 mark it will reach a 7 1/2-month high.

In other news, Japan's labor cash earnings for companies with five or more employees eased 2.5% on-year in April, the Ministry of Health, Labor and Welfare said.

The European currency fell to its lowest level in nearly six months against the sterling, hitting 0.8615. The euro has been trending lower for about three weeks.

UK house prices remained stable in May for the first time in 20 months, a survey conducted by Hometrack revealed. For the last 20 months, house prices were recording month-on-month declines. After falling 0.3% in April, average house prices stayed at GBP 155,600 in May.

For comments and feedback: contact editorial@rttnews.com