RTRS:Euro and sterling extend gains versus soft dollar
Oct 12 (Reuters) - The euro extended gains to rise 1 percent versus the dollar on Wednesday as riskier currencies rallied amid tentaive optimism European leaders could reach an agreement on how to resolve the euro zone debt crisis, forcing a squeeze on short euro positions.
The single currency rose to a session high of $1.3787, triggering stops from $1.37 upwards traders said, to reach its highest level in nearly four weeks.
Sterling also rallied versus the broadly weaker dollar, hitting a three-week high of around $1.5726.
