The shared currency of the European Union climbed against the monetary unit of Japan on Thursday prior to the release of economic information about euro zone industrial production, according to Bloomberg.
Economists polled by the news service indicated the data will show strengthening. Mario Draghi, president of the European Central Bank, is on a two-day trip to Eastern France, where he is encouraging support for the economic recovery.
"The euro's rise towards two-year highs against the dollar is probably the path of least resistance," head of currency strategy Jeremy Stretch with CIBC World Markets told Reuters on Thursday. "There is nothing fundamental driving it but year end liquidity squeeze. Unless short term rates ease, we will see the euro remain bid."
The 17-nation monetary unit rose about 0.4 percent against the currency of the Pacific Rim country after having fallen 0.5 percent against its rival during the past 48 hours. The euro was about 0.2 percent from touching its top value in six weeks against the U.S. dollar.
As the holidays and the end of the year approaches, euro region financial institutions were advancing toward the production of year-end balance sheets, according to Reuters.
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