The dollar dropped as U.S. economic data showed a quickening recovery and European funding stress eased, damping demand for the safety of the U.S. currency.

The euro rose from an 11-month low against the dollar as Spain sold more than its maximum target at a debt auction and a report showed European manufacturing and service industries contracted less this month than economists forecast.

The euro rallied after the currency’s 14-day relative strength index against the dollar fell to 29 yesterday, below the 30-level that some traders see as a sign a currency may be poised to reverse direction.