The euro remained up against the dollar Tuesday, in a market without large volume, supported by renewed optimism of traders anticipating next action of the European Central Bank (ECB) to rescue the euro area.
Around 1800 GMT, the euro bought 1.2419 dollars against 1.2399 dollars around 2100 GMT Monday.
The euro rose also against the yen at 97.75 yen against 96.97 yen late Monday.
The dollar also gained ground against the Japanese currency to 78.70 yen against 78.20 yen yesterday.
After climbing the previous day to its highest level in a month (1.2444 dollar), the euro continued its slight lead against the dollar in a summer market always reassured by comments from ECB President, Mario Draghi, Thursday.
Then he said that the institution was ready to come to the aid of the euro area, by intervening in the bond market, provided that governments do their duty.
"The European Central Bank said he was ready to intervene if necessary and even if the details (of this) remain unclear, it remains positive (for the euro) because it means that the ECB stands ready" to act, noted Charles St-Arnaud, Nomura.
This could include co-ordinating with the EFSF, the Relief Fund of the euro area, which may redeem the debt markets and relieve a country where borrowing rates are soaring.
"The situation in the euro area gives the tone of new markets," noted Craig Erlam analyst Alpari UK, for which traders now expect to see Spain, which has already received a plan assistance for its troubled banking sector, ask for a comprehensive rescue.
This perspective "is welcomed by the markets," commented Mr. Erlam, noting that "if the operation of such a rescue is not clear, it may simply be a combined action of the European Relief Fund and the ECB to buy Spanish debt and enable the country to raise funds at prices considered fair.”
Friday, Mariano Rajoy has said his side he wanted to "study" the new measures by the ECB, before deciding whether it would appeal.
"In this context, many brokers who had bet on the decline of the euro cover their positions and take over (the currency), which causes a slight upward movement," observed Charles St-Arnaud.
"But investors are still waiting for new developments", and remain cautious, he added.
In Japan, the Minister of Finance Jun Azumi announced the six-month extension of assistance to Japanese companies that have assets abroad and the results of which are handicapped by the strong yen, traditional safe haven in difficult economic times.
Around 1800 GMT, the British pound gained some ground against the euro at 79.34 pence per euro, after falling the previous day to its lowest level in a month (79.63 pence), and rose against the greenback at 1.5650 dollar.
The Swiss franc was stable against the euro, Swiss franc to 1.2015 per euro, and gained some ground against the dollar at 0.9674 Swiss francs to the dollar, after reaching its highest level Monday since one month to 0.9657 francs per dollar.
The Chinese currency finished at 6.3666 yuan against one dollar for 6.3739 yuan yesterday.
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