LONDON (SHARECAST) - The euro made progress against the dollar on Tuesday amid signals that progress has been made in talks about Greece's financial aid package ahead of Thursday's key meeting between European officials.
The single currency reached a high of above $1.4200 against the dollar but later traded at around $1.4125 from $1.4120 on Monday.
The dollar traded lower against major rivals as risk appetite picked up following optimism about debt talks in both Europe and the US.
President Barack Obama said progress had been made in agreeing on a new deficit-reduction plan to avoid a US debt default.
The dollar index, which measures the US currency against a basket of six others, traded at 75.210 from 75.343 late Monday.
Upbeat US earnings reports also encouraged interest in riskier currencies and took debt issues temporarily out of the spotlight.
The dollar rose to 79.21 yen after reaching a session low of 78.820 yen.
Sterling made headway against the dollar on Tuesday but concern about UK exposure to the euro zone crisis capped gains. The euro remained little changed against the euro at 87.90p.
