The dollar reached a two-week high versus the euro after an unexpected drop in U.S. consumer confidence this month. The U.S. consumer is the prominent component of the global recovery.

The dollar climbed 0.3 percent to $1.4582 per euro at 1:08 p.m. in New York, from $1.4622 yesterday, and touched $1.4527, the strongest level since Sept. 14. The yen depreciated 0.7 percent to 90.23 per dollar, from 89.63, after reaching 88.24 yesterday, the strongest level since Jan. 23. Japan’s currency declined 0.4 percent to 131.53 per euro.

The New York-based Conference Board reported that its U.S. consumer confidence index decreased to 53.1 this month from a revised 54.5 in August.

Sterling gained the most versus the euro since June as a report showed the U.K.’s economy shrank less than previously estimated. The dollar increased earlier as Russia said it would maintain the share of U.S. Treasuries in its international currency reserves, reducing concern central banks will diversify away from the greenback.

The pound also advanced after Reuters cited unidentified economists who attended a meeting at the Bank of England today in reporting that the bank has no immediate plans to change the way it pays interest on the reserves commercial banks keep with the central bank.

Sterling dropped to a five-month low against the euro last week after the Newcastle Journal reported that King said the currency weakness is “very helpful” in aiding in rebalancing the U.K.’s economy.

The pound will decline to parity with the euro in three to six months because the U.K.’s economy is lagging behind the rest of the world and the banking system remains fragile.
The yen fell against the dollar for the first time in four days after Finance Minister Hirohisa Fujii said he may intervene in foreign-exchange markets. “If the currency market moves abnormally, we may take necessary steps in the national interest,” Fujii said at a news conference in Tokyo today.

As the Democratic Party of Japan, or DPJ, came into power for the first time two weeks ago, Fujii said he opposed governments stepping into currency markets. Central banks intervene in foreign-exchange markets by selling and buying currencies.