FX: Euro surges against dollar amid Greece rescue hopes
The euro surged to a 3-day high against the U.S. dollar on Tuesday, amid speculation that European financial leaders will agree to help Greece tackle its spiraling budget at a meeting later this week.
EUR/USD hit 1.3774 during midday European trade, the 3-day high. It subsequently hovered around 1.3758, gaining 0.8%. The pair was likely to find resistance at 1.3903, Thursday's high, and support at 1.3585, Friday's low.
The euro also gained against the yen, with EUR/JPY rising 1.24% to hit 123.33. The pair fell to its lowest levels in nearly a year on Friday as sentiment toward the single European currency deteriorated further amid fears over the fiscal health of Greece and of other peripheral euro zone nations, chiefly Spain and Portugal.
Earlier Tuesday, Germany's Federal Statistical Office said the country's consumer price index declined 0.6% on a monthly basis in December, as had been expected by economists.
