News

The euro climbed against the dollar on Tuesday, extending a modest recovery against the U.S. currency after days of losses prompted by concerns over government debt in Europe.

The euro bought $1.3724 in morning European trading, up from $1.3701 in New York late Monday.

The 16-nation currency last week traded as low as $1.3586, its weakest point since May 2009, amid concerns about unsustainable debt levels in euro zone members Greece, Portugal and Spain.

The euro "appears to be starting to unwind some of its recent oversold momentum" ahead of a European Union summit on Thursday, said Michael Hewson, an analyst at CMC Markets.

However, the euro is widely expected to remain under pressure while doubts persist about Greece''s ability to tackle its large deficit, in particular.

In other trading Tuesday, the British pound edged up to $1.5645 from $1.5640, while the dollar rose to 89.60 Japanese yen from 89.34 yen.