The euro was seen on constant note while demand for high-yielding currencies like the Australian dollar was underpinned by a general improvement in risk taking. Investors set aside concerns about the euro zone’s financial sector and soft economic data for the moment to buy riskier assets, higher-yielding currencies and the euro.
John Horner, currency analyst at Deutsche Bank said: "The data flow was soft, but at the moment investors are not focusing on that. The price action suggests that both the euro and the Aussie’s rally in the past few sessions have a bit to run."
Traders do not rule out a short squeeze in the euro which could take it higher.
The euro was up at $1.2315. The dollar was at 86.10. The dollar was steady at 91.44 yen.