Euro nears two month high against the dollar
The euro neared a two-month high against the dollar on Tuesday as last week’s bank stress test results showed no causes for concern and demand for riskier assets rose. Although some analysts stated that the stress tests weren’t tough enough, the euro carried on up as the dollar hit a 12-week low against a host of currencies after weak US data encouraged investors to move to riskier assets.
The euro rose to $1.3023 before trimming back to $1.2992 by the end of the session as sterling hit a 5-month high against the struggling US dollar. Strong gross domestic product data from the UK on Friday boosted the sterling as it hit $1.5530 against the greenback.
Elsewhere the Australian dollar held firm at 0.9023 against the dollar, while the New Zealand dollar hit a six month high of $0.7335. The dollar did rise against the yen during the session ending at 87.19 a 0.4 percent increase.