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According to Reuters, many investors are continuing to trade cautiously ahead of a rate-setting decision by the US Federal Reserve.
Jeremy Stretch, a strategist at Rabobank, commented: "There is a modest move back towards risk apetite, albeit a very cautious one.
"The key to currency developments will be stock market performance ahead of the Fed meeting."
At 08:27, the euro increased by 0.9 per cent against the dollar and 1.1 per cent against the yen.
Meanwhile, the dollar went up by 0.3 per cent against the yen.
The euro was boosted by an unexpected improvement a key German business environment indicator.
Yesterday, the pound increased against the euro following a week-long decline after Barclays said it would not be requiring government funds due to an increase in revenue.
