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By Bloomberg

The euro headed for a third weekly against the dollar, the longest winning streak in almost a year, as a cease-fire agreement in Ukraine eased geopolitical concerns and falling retail sales dimmed the outlook for U.S. growth.

The single currency rose to a one-week high on Thursday after the Ukraine and Russia agreed on a truce that will take effect on Feb. 15. A gauge of the dollar was set for a second weekly decline after retail sales fell more than forecast, prompting traders to question the timing of the Federal Reserve’s projection for an interest-rate increase this year.

“Receding fears of geopolitical risks supported the euro against the dollar,” Takeru Kurokawa, an analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services, wrote in a note to clients. “Expectations for progress in the Ukraine helped the greenback trim its loss against the yen.”

The euro was little changed at $1.1405 as of 8:53 a.m. in Tokyo, after touching $1.1423 Thursday, the strongest since Feb. 6. It headed for a 0.8 percent advance this week.

Demand for the euro increased on easing concern that Greece will exit the currency bloc, said Masato Yanagiya, head of foreign exchange and money trading at Sumitomo Mitsui Banking Corp. in New York.

Greece and Germany are pursuing a deal on the conditions required to continue the Greek bailout as each side signals a willingness to compromise, according to government officials taking part in the talks.

The Bloomberg Dollar Spot Index slipped 1 percent to 1,163.11 Thursday for its biggest loss since Sept. 18, 2013, after closing at an all-time high on Feb. 11.

The dollar traded at 118.97 yen after sliding 1.1 percent to 119.11 Thursday after a Bloomberg News report that Bank of Japan policy makers deem further easing counterproductive.

The Aussie gained for a second day against the U.S. dollar as Reserve Bank of Australia Governor Glenn Stevens said in testimony to parliament that a further adjustment in the currency will probably occur.

Australia’s dollar rose 0.2 percent to 77.47 U.S. cents.