Debt sales strengthen euro - FT.com The euro broke above $1.29 against the dollar for the first time in two weeks following more positive signs on the eurozone's debt problems. Strong demand and lower yields at bond auctions in Spain and France helped to lift sentiment. The single currency reached $1.2919, rising nearly 0.5 per cent compared with the previous day, amid hopes that Greece was moving closer to a deal with investors that would avert a debt default. Other so-called "risk on" currencies, such as the Australian and New Zealand dollars, failed to follow the euro higher in what analysts said was a shift from normal trading patterns. The euro continued to gain value against the yen after hitting an 11-year low against the Japanese currency this week. The single currency rose 0.4 per cent to Y99.14. Scandinavian currencies outperformed the euro, with the dollar falling 0.5 per cent against the Norwegian krone to Nk5.9363 and losing 0.7 per cent against the Swedish krona to Sk6.7896. A surprise drop in employment figures for last month in Australia sent the Australian dollar down 0.2 per cent against the US dollar to $1.0406. The New Zealand dollar suffered after lower inflation data for the fourth quarter of last year, losing 0.3 per cent against the US dollar to $0.8009. "Foreign exchange markets are moving on domestic news rather than global risk appetite," said Adam Cole, currency analyst at RBC Capital Markets. The Hungarian forint continued to gain ground against the euro, hitting its strongest level in a month. This followed hopes that Hungary's government would reconsider recent reforms that the European Union has said are contrary to EU law. The euro fell nearly 1 per cent against the forint to Ft301.73. The pound was flat against the dollar at $1.5437, while the euro rose 0.3 per cent to £0.8356. The yen was flat against the dollar at Y76.82.