The European currency rose from a 3-week low against the U.S Dollar as European leaders tried to allay concerns that they were unprepared to aid Greece, easing pressure on higher-yielding assets. The EUR rose 0.2% to $1.3558 from $1.3530 on March 19. It earlier fell to $1.3464, the weakest level since March 2.
The spotlight this week turns to a summit of European Union (EU) leaders Thursday. The EUR may fall lower if European leaders don't decide quickly on helping Greece in financing the region's biggest budget deficit. Analysts said the EUR may remain vulnerable to further weakness and volatility before and during the summit.
The British Pound weakened for a 3rd day against the U.S Dollar. The GBP was also driven lower amid speculation that Dubai World will prolong the repayment of its loans, hurting earnings at U.K. banks that serviced the state-owned Emirati company. The key event for the week will be the release of the government's budget for the 2010-11 fiscal year on Wednesday.