The euro rose versus the dollar and yen after Greek Prime Minister George Papandreou signaled he won’t call for a referendum on a bailout package, easing concern voters would reject it and send the nation into default. Papandreou reached out to his political opposition about setting up a transitional government, indicating an accord would secure aid and remove the need for a referendum on euro membership.

The 17-nation currency earlier approached a three-week low versus the greenback after the European Central Bank cut its key interest rate to 1.25 percent and said Europe is heading toward a “mild recession.”

The dollar dropped as stocks and commodities rallied, damping demand for haven assets.

The euro gained 0.8 percent to $1.3850 at 1:50 p.m. in New York, after falling as much as 0.7 percent. It dropped to $1.3609 on Nov. 1, the weakest since Oct. 12. The shared currency strengthened 0.6 percent to 107.97 yen. It slid earlier as much as 0.7 percent after the ECB announcement. The Japanese currency rose 0.1 percent to 77.97 per dollar.