European exports increased in November, led by France and the Netherlands, as the euro's 3 per cent decline in the month made the region's goods more competitive.

Exports from the euro region rose a seasonally adjusted 3.9 per cent from October, when they dropped 2 per cent, the EU's statistics office in Luxembourg said today. Imports were flat and the trade surplus widened to €6.1 billion from a revised €500 million a month earlier.

EU president Herman Van Rompuy said on Wednesday that the current euro exchange rate against the dollar, "down 10 per cent in recent months, is favourable for exports."

Exports from Germany, Europe's biggest economy, increased a seasonally adjusted 0.1 per cent in November, today's report showed. Shipments from France advanced 13.3 per cent and Dutch exports rose 8.4 per cent. Exports from Greece tumbled 14.4 per cent in the month.

The euro headed for its first weekly gain versus the dollar in six week as European Central Bank President Mario Draghi said policy makers have averted a credit shortage.

"Investors will focus on the outcome of today's Italian bond auction," Valentin Marinov, a senior foreign-exchange strategist at Citigroup in London, wrote in a note to clients. "Indications of resilient private demand could help the euro extend its gains further, especially against the dollar and yen."

The euro was little changed at $1.2820 at 9:40 a.m. in London, having strengthened 0.8 per cent this week, the first five-day advance since the period ended December 2nd.

Bloomberg