Aug. 7 (Bloomberg) — The euro rose for a third day against dollar and was stronger versus the yen after Germany backed European Central Bank President Mario Draghi's proposals to stem the region's debt crisis.

The shared currency gained versus most of its 16 major counterparts as a report showed Italy's economy shrank less than economists predicted. Euro gains were supported as the European Union said it had received no requests for the region's rescue fund to buy government bonds. Norway's krone climbed after manufacturing increased.

"There's a slightly risk-on tone to the market," Greg Anderson, the North American head of G-10 currency strategy at Citigroup Inc. in New York, said in a phone interview. "It's leading into the closing of shorts, because that's where the market was positioned last week. The market will continue to pay most attention to European policy and headlines." A short position is a bet an asset will decline.