The euro rose against the U.S. dollar Tuesday as an interest rate increase from the Australian central bank and rising stock markets lent investors some new confidence in the global economy.
The 16-nation euro bought $1.4733 in European morning trading, up from the $1.4661 late Monday in New York.
The British pound rose to $1.5982 from $1.5947 while the dollar fell against the Japanese currency to 89.20 yen from 89.51 yen late Monday in New York.
The Reserve Bank of Australia unexpectedly raised interest rates to 3.25 percent from a 49-year low of 3 percent Tuesday, the first major economy to increase the cost of borrowing amid signs its recovery from the global slump is gaining momentum.
Asian stock markets mostly rose after the central bank's decision.
Markets were also buoyed by a report Monday that showed the U.S. services industry grew for the first time in a year.
Stock market gains often prompt investors to exit the safety of U.S. dollar investments as they search for assets that can earn better returns.
