The euro extended gains on Thursday to hit the day's highs against the dollar after higher-than-expected German industrial orders data.

German manufacturing orders rose by 3.2 percent on the month in June, official data showed, surpassing expectations thanks to strong foreign demand.

The euro rose as high as $1.3219 EUR=. It had been rising as short-covering accelerated after breaking above $1.32, traders said. (Reporting by London forex team)

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