The euro advanced against the dollar on Tuesday as fresh efforts to tackle the eurozone's debt crisis helped to offset a drop in German investor confidence.
The European single currency rose to $1.4168 in London deals from $1.4153 late in New York on Monday.
Against the Japanese currency, the dollar firmed to 81.61 yen from 80.76 yen on Monday.
Europe offered Greece a second chance to get its finances in order on Monday, as its 27 finance ministers shifted position on how to deal with a deepening debt crisis in Athens.
They refused to rule out new loans, or a second bailout, and expressed a willingness to offer more time to meet 110 billion euros ($156 billion) in existing commitments -- but demanding 50 billion euros of sell-offs first.
That came after they gave their expected approval of a 78-billion bailout for Portugal, and picked Italy's Mario Draghi to replace France's Jean-Claude Trichet as head of the European Central Bank in October.
On Tuesday meanwhile, Greece raised 1.625 billion euros, or $2.3 billion, at slightly easier rate, in an auction of three-month treasury bills as its eurozone peers inched