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The single currency was up 0.1 per cent against the sterling at 88.94 pence, reports Reuters, as well as rising 0.3 per cent on the dollar to $1.4614.
This growth came ahead of an announcement from the European Central Bank (ECB) regarding interest rates and refinancing options, which gave a boost to the euro's yield differentials.
In the statement, the ECB opted to keep interest on the deposit facility, marginal lending facility and main refinancing options unchanged.
Head of global currency research at Bank of Tokyo-Mitsubishi Derek Halpenny said signals of a July rate hike in the announcement were "certainly what the financial markets are positioned for".
Consequently, he explained: "The upside potential is less than the downside potential from a surprisingly dovish press conference."
In morning forex trading, the euro also strengthened against the Swiss franc, recording an increase of 0.7 per cent.
Posted by Chris Weaver
