The euro rose when banks borrowed less money than expected from the European Central Bank, soothing concerns over European banks’ funding issues. Gains in the euro were limited after Moody’s Investors Service said it may cut Spain’s Aaa sovereign debt ratings on deteriorating economic growth prospects.
Jamie Heighway, a market analyst at Custom House, a Western Union company, in Victoria, British Columbia said: "The much less-than-expected requirement for ECB funding is significant, as it suggests that difficulties throughout euro-zone financial institutions were not as bad as originally feared. Clearly, (it’s) a relief for investors, at least over the short term."
The euro hit a session high of $1.2304. Against the yen, the euro was up 0.2 percent at 107.82 yen. The single European currency also rose 1.2 percent against pound.