The euro is holding on to gains against the U.S. dollar as stock markets rise and traders' appetite for riskier assets holds up.
The 16-nation euro rose as high as $1.2687 before settling back to $1.2654 in Thursday morning European trading -- still above the $1.2650 it bought in New York late Wednesday.
Fear of surging public debt and slowing growth have hurt the euro this year but it has been helped recently by hopeful signs on banks' health -- although tensions remain over European "stress tests" for the sector.
Both the European Central Bank and the Bank of England are expected to leave interest rates unchanged at meetings Thursday.
The British pound edged up to $1.5209 from $1.5205. The dollar was up to 88.39 Japanese yen from 87.40 yen.
