The common currency of the European Union held on to gains against the world's reserve currency and the Japanese yen on Tuesday as the chief of the European Central Bank prepares to speak in Italy, according to Bloomberg.
The shared currency remained high against most of its major counterparts after economic data showed Italian industrial output gained more rapidly than economists had forecast. The speech of Mario Draghi might indicate what the body he leads has planned regarding stimulus policy.
"It is a combination of lack of urgency on the part of the ECB and the tighter liquidity conditions that are driving the euro higher," Currency Strategist Alvin Tan with Societe Generale told Reuters on Tuesday. "The year's high of $1.3833 is definitely in play and we could expect it to go even higher."
The euro has advanced more than 1.5 percent against the greenback since last week when the ECB did not follow the unexpected interest rate cut with further policy change, according to Reuters.
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