Uplifting economic data from Germany pushed up the value of the 17-nation single currency on Tuesday as the euro pecked away at losses to the U.S. dollar, according to Reuters.
The euro's performance also benefited from the fees on short-term borrowing in Spain falling as the nation is one suffering under the duress of the sovereign debt scourge. But the brunt of gains derive from the monthly business climate index administered to 7,000 companies in Germany by think tank Ifo of Munich. The index saw a gain to 107.2 in December from 106.6 last month.
Though the euro gained in value, the future for the embattled currency does not appear to be very bright as indicated by increases to a debt fund.
"They have agreed to boosting resources by 150 billion euros which still raises questions about Italy and the threat of rating agencies looming," currency strategy head Simon Derrick with Bank of New York Mellon told Reuters. "You just need another piece of bad news and the euro will [be] nudging closer to its 2011 lows."
The U.S. Dollar Index, a gauge of the U.S. dollar's strength when held against six rival currencies, slipped on Tuesday, according to MarketWatch.
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