The European Single Currency, euro was last up 0.2 percent against the greenback at $1.1933. While remaining below a more than 2-1/2-year peak of $1.2069 touched last week, analysts said it was probable that the ECB would hint or announce a tapering of its bond-buying program on Thursday, a move which would likely boost the euro.
The euro also gained against the dollar after Federal Reserve Vice Chair Stanley Fischer announced his resignation, effective on or around Oct. 13.
The euro and loonie’s gains resulted in the dollar index, which measures the greenback against a basket of six major rivals, last being down 0.2 percent at 92.076.
“The FX market is looking for direction from the ECB, and we believe that there is pressure building for the ECB to make some movement towards ending (quantitative easing),” said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York.
He said the euro could rise to around $1.25 by the end of September.
