Investing.com - The euro surged to a 4-day high against the U.S. dollar on Tuesday, amid speculation that the Federal Reserve would banish talk of early monetary tightening and keep its target interest rate at a record low.
EUR/USD soared to 1.3672 shortly before the European trading session, its highest rate since last Wednesday; it subsequently hovered around 1.3660, gaining 0.47%. The pair was likely to find resistance at 1.3839, the high of Feb. 9, and support at 1.3445, Friday's low and a 9-month low.
The single European currency also rose against the yen, with EUR/JPY climbing 0.21% to reach 124.17.
On Monday, the president of San Francisco's Federal Reserve Bank, Janet Yellen, said the U.S. economy still needed extraordinarily low interest rates since inflation was "undesirably low," Reuters reported.
Some investors expect Fed chief Ben Bernanke to echo this view at appearances before the financial committee of the House of Representatives on Wednesday and the Senate banking panel the following day.
Meanwhile, the Conference Board was set later Tuesday to release its monthly consumer confidence index, a leading indicator of consumer spending.