Investing.com - The euro remained higher against the other major currencies on Tuesday as a renewed selloff in government bonds bolstered the single currency and pressured the dollar lower.
EUR/USD hit highs of 1.1279 and was last at 1.1250, a gain of 0.85% on the day.
The single currency was boosted as a fresh selloff in global bond markets undermined greenback strength. German 10-year bund yields jumped, narrowing the gap with their U.S. counterparts.
German bund yields act as benchmarks for European financial markets and higher yields push the euro higher against the dollar. Yields rise as prices fall.
Weakness in bond markets and ongoing concerns over Greece also weighed on European equities.
Greece repaid a €750 million loan installment to the International Monetary Fund on Tuesday, easing concerns that it was on the verge of default, but uncertainty over the country’s future in the euro area persisted.
Athens is scrambling to reach an agreement with its international creditors on a package of economic reforms in order to access fresh bailout aid and avert a liquidity crunch.
The European Central Bank on Tuesday increased the emergency funding available for Greek banks by €1.1 billion to €80 billion following some progress in Greece’s debt negotiations on Monday.
The single was also higher ground against the yen and the pound, with EUR/JPY climbing 0.74% to 134.93 and EUR/GBP up 0.38% to 0.7183.
Elsewhere, sterling was trading close to five-month highs against the dollar, with GBP/USD up 0.4% to 1.5647.
The pound was boosted by data showing that U.K. industrial output grew at the fastest rate in six months in March, easing concerns that the rate of economic growth is moderating.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.61% to 94.51, re-approaching last week’s two-month trough of 93.96.