Investing.com – The euro held gains against the U.S. dollar on Monday, boosted by an agreement to shore up the euro zone’s bailout fund while concerns that Japanese authorities could intervene if the yen strengthened too far against the dollar lingered.
EUR/USD hit 1.3981 during European early afternoon trade, the pair’s highest since March 8; the pair subsequently consolidated at 1.3963, rising 0.43%.
The pair was likely to find support at 1.3751, Friday’s low and resistance at 1.4035, the high of March 7 and a four-month high.
The single currency was boosted after European Union leaders agreed to increase the effective lending capacity of the European Financial Stability Facility to the full EUR440 billion from a level of around EUR250 billion and enable the fund to buy the bonds of distressed member states.
The agreement would ensure that the fund was capable of bailing out any euro zone states beyond Greece and Ireland that needed assistance.
Earlier in the day, the BoJ announced that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion to bolster confidence in the economy, following a massive earthquake, a tsunami and a nuclear emergency.
The euro was also up against the yen, with EUR/JPY climbing 0.38% to hit 114.22.
Also Monday, official data showed that industrial production in the euro zone expanded slightly less-than-expected in January, but December's result was revised upward to show a further rise after robust growth in October and November.
EUR/USD hit 1.3981 during European early afternoon trade, the pair’s highest since March 8; the pair subsequently consolidated at 1.3963, rising 0.43%.
The pair was likely to find support at 1.3751, Friday’s low and resistance at 1.4035, the high of March 7 and a four-month high.
The single currency was boosted after European Union leaders agreed to increase the effective lending capacity of the European Financial Stability Facility to the full EUR440 billion from a level of around EUR250 billion and enable the fund to buy the bonds of distressed member states.
The agreement would ensure that the fund was capable of bailing out any euro zone states beyond Greece and Ireland that needed assistance.
Earlier in the day, the BoJ announced that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion to bolster confidence in the economy, following a massive earthquake, a tsunami and a nuclear emergency.
The euro was also up against the yen, with EUR/JPY climbing 0.38% to hit 114.22.
Also Monday, official data showed that industrial production in the euro zone expanded slightly less-than-expected in January, but December's result was revised upward to show a further rise after robust growth in October and November.