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Reuters reports the European currency was up 0.4 per cent against the dollar at 06:38 BST, putting it on $1.2253 (83.2p).
It also climbed by one per cent against the yen, which has fallen across the broad on the news Japan's prime minister Yukio Hatoyama will resign.
Senior investment manager for Shinkin Asset Management Jun Kato was quoted by the news source as saying "Japan's political turmoil is a factor for yen selling, especially for non-Japanese investors".
However, he added buyers should return to the yen once a successor to Mr Hatoyama has been chosen.
The pound has also performed strongly in Forex trading over the past 24 hours, after it was given a boost by the news Prudential could withdraw its bid for Asian insurance group AIA.
Posted by Greg Secker
