The euro received a reprieve today from its bearish trend following stronger US equities and a pledge by Japan to purchase debt from the European Financial Stability Facility (EFSF). A 0.3% rise in the value of the Dow Jones Industrials Average also helped to boost risk appetite.

An announcement by the Japanese Ministry of Finance and its intention to purchase more than 20% of the bonds offered in the EFSF boosted interest in the euro as traders sent the 17-nation currency higher not only versus the dollar but also versus the Swiss franc.

At the end of the trading day the EUR/CHF was up sharply at 1.2645 from an opening day price of 1.2535. The EUR/JPY was trading higher at 108.13 from 107.45, while the EUR/GBP was even for the day at 0.8315.

Despite the rise in the euro, the market appears to have set its sights on Portugal as the next potential domino to fall in the debt ridden euro zone. Today Portugal will go to the markets looking to raise 1.25 Bn euros. Analysts expect the demand for the struggling European nation's debt to be scant as Portugal has so far resisted all suggestions to accept funding from the European Central Bank or the International Monetary Fund. Should the debt offering by Portugal not be well received by the market, the selling of the euro may continue with the EUR/CHF potentially testing its all-time low at 1.2399.