NEW YORK: The euro gained ground against the US dollar Monday as positive market sentiment spurred buying of riskier assets, such as the European currency.
The euro fetched US$1.3376 around 2200 GMT, up from US$1.3341 at the same time last Friday. Earlier, the unit brushed US$1.3404, its highest level in almost 11 months.
The euro continued to rise against the Japanese currency, to 119.65 yen from 119.00 yen late Friday, while the US dollar rose to 89.45 yen from 89.18 yen.
The market showed little reaction to a speech by Federal Reserve Chairman Ben Bernanke on the challenges facing the US economy, analysts said.
"I saw nothing very different from what has already been announced by the Fed," whether it be in the minutes from the last Federal Open Market Committee policy meeting in December or the FOMC statement, Charles St-Arnaud, a Nomura economist, said.
Wading into the Washington political fray over the federal budget and the borrowing limit, Bernanke called on Congress to lift the debt limit to avoid putting the country into default.
Kathy Lien of BK Asset Management said the market was waiting for Tuesday's US retail sales data for December, which covers the important holiday-shopping season.
"Consumer spending is the backbone of the US economy, and the only reason why investors obsess over the labour market is because they hope that stronger job growth will translate into stronger spending," Lien said.
The euro rise was buoyed by last week's upbeat comments by European Central Bank president Mario Draghi.
The yen, meanwhile, remained under selling pressure after Japanese Prime Minister Shinzo Abe on Friday unveiled a US$226.5 billion stimulus plan in the latest bid to boost the world's fragile number-three economy.
The US dollar rose against the Swiss currency, buying 0.9216 francs compared with 0.9135 francs late Friday.
The pound fell to US$1.6074 from US$1.6129.
- AFP/jc
Euro gains against US dollar in positive market
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Euro gains against US dollar in positive market
