Anticipation for a court in Germany approving the bailout fund for the debt-hobbled euro zone helped drive the 17-nation bloc's monetary unit to its highest value since late May against the U.S. dollar, Reuters reports.
Further conjecture about the central bank of the U.S. commencing with a third round of quantitative easing also benefited the euro on Tuesday as officials with the Fed begin two days of meetings on Wednesday. But the German court staved off reports indicating it would delay issuing its Wednesday ruling about the about the European Stability Mechanism, as the bailout fund is known.
The court in the nation hosting the largest economy in 17-nation bloc said its ruling "won't be delayed, in response to some reports saying it could be," senior currency strategist Jane Foley with Rabobank International in London told Reuters. "If the euro can rally on that news then the market is still in a euphoric mood."
The euro pushed to its top value since May 22 shortly after the court's affirmation.
Amid sizable amounts of speculation, the central bank of the U.S. will be watched closely following its Wednesday and Thursday meetings as to whether it will move forward with a third round of quantitative easing, Bloomberg reports.
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