Euro hits six-week peak on banking deal view; dollar falls

The euro rose as high as $1.3790, its strongest level since October 30. It was last at $1.3786, up 0.3 percent on the day.

“We’re going to see a breakout in the euro soon and we could see it test $1.39,” said Andres Bergero, chief corporate trader at Bank of the West in San Ramon, California.

“The euro zone economy is still fairly fragile, but there aren’t as many fires as before. So there is a perceived notion that things are little bit better, a little more stable in Europe.”

Against the yen, the euro hit a five-year peak of 142.17 yen, a high not seen since October 2008, but it was last down 0.2 percent at 141.54 yen.

The euro has gained over 1.5 percent against the dollar and 2.7 percent versus the yen since the ECB last week refrained from following up on November’s rate cut and said it has yet to come up with a detailed plan on which tools to use and when.

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