NEW YORK (Bloomberg) — The dollar and yen fell versus all of their major counterparts as concern eased Greece would default and European and US reports signaled the economic recovery is accelerating, fuelling appetite for riskier assets.

The euro touched a one-month high versus the greenback as stocks gained for a second week. The yen fell against all 16 of its most-traded peers as Japanese officials said the government is ready to intervene to keep the currency from strengthening. Federal Reserve policy makers are forecast to hold interest rates steady at a meeting next week.

"The European problem was seen as a systemic risk problem," said Joseph Trevisani, chief market analyst at FX Solutions, a currency brokerage in Ridgewood, New Jersey. "It's become very clear they're going to pull Greece out of the fire. That's benefited the bellwether crosses directly."

The dollar slid one percent to $1.3769 per euro in New York, from $1.3626 on March 5. It touched $1.3796 on Friday, its weakest level against the 16-nation currency since February 11. The yen depreciated 1.4 percent to 124.69 per euro, from 123 a week ago. The greenback rose 0.3 percent to 90.56 yen, its second weekly gain, and reached 91.09 yen yesterday, its highest level since February 23.

European Central Bank President Jean-Claude Trichet said on Friday in an interview with Bloomberg Radio that Greece's plan to cut the euro-region's largest budget deficit will win the backing of investors and credit-rating companies. French President Nicolas Sarkozy said March 7 the region is ready to rescue Greece and "fulfill its commitments" if necessary.

The Standard & Poor's 500 Index advanced one percent for the week, and the MSCI World Index, a measure of stocks in 23 developed markets, gained 1.4 percent.

The Swiss franc appreciated against the euro, strengthening past 1.46 for the first time in more than a year even after the central bank warned this week it would stem "an excessive appreciation."

Canada's currency approached C$1 versus its US counterpart after employment climbed in February for a second month, adding to speculation policy makers are moving closer to raising the record-low 0.25 percent target lending rate. The currency touched C$1.0156, the strongest level since July 2008.

European industrial output rose in January the most since August 1989, a report showed yesterday. Output in the economy of the nations using the euro jumped 1.7 percent from December, the European Union's statistics office in Luxembourg said.

Sales at US retailers rose for a second month, advancing 0.3 percent after a revised 0.1 percent gain in January, a Commerce Department report showed. The median forecast in a Bloomberg News survey of economists was for a 0.2 percent drop.

"The data is certainly risk-positive," said Alan Ruskin, head of international currency strategy in North America at Royal Bank of Scotland Group Plc in Stamford, Connecticut. "It speaks to the global recovery."

Asian currencies rallied as improving economic data and reduced concern that Greece will default spurred demand for regional assets.