The euro was seen trading near a two-month high versus the dollar and the yen before a report that economists thought will show new industrial orders in the 17-nation region getting more .

The single currency reached near the strongest in two weeks versus the pound following the statement made by European Central Bank President Jean- Claude Trichet to the Wall Street Journal that policy makers will keenly observe energy and commodity prices, indicating possible higher interest rates.

Australia's dollar declined toward a seven-week low against the dollar after a government report pointed out that producer prices went up less than economists' prediction.

Euro zone rates are higher versus the U. S. and the nations that were a cause for woe have raced strongly, stated Tony Allen, the global head of currency trading located in Sydney at Australia & New Zealand Banking Group Ltd., It is Australia's third biggest lender in terms of market capitalization. They are aggressively moving for euro.

The euro was seen trading at $1.3594 as seen at 12:42 p. m. in Tokyo coming down from $1.3621seen in the last week in New York, after going up to $1.3647 earlier today, the strongest after Nov. 22. The single currency traded at 112.51 yen up from 112.48 yen, after going up to 112.71, the highest after Nov. 23. The euro traded at 85.12 pence up from 85.13 pence, after going up to 85.31, the highest since Jan. 5. The dollar was at 82.76 yen from 82.57.

In the euro region Industrial orders went up by 1.9 percent in the month of November from the previous month, when they profited 1.4 percent, as showed by a Bloomberg survey before today's report. A composite index on the basis of a survey of euro-area purchasing managers gone up to 55.6 in the month of January from 55.5 in the month of December, a separate survey showed prior to the Markit Economics' data today.