The 17-nation currency rose for the second day as Chancellor Angela Merkel meets today with the President of the International Monetary Fund Lagarde to discuss methods to help in alleviating European debt crisis.

The meeting comes after Merkel-Sarkozy meeting yesterday in Berlin which tackled a rulebook for closer fiscal compact in the euro zone.

Meanwhile, there is slight optimism European leaders are on their way to resolve the crisis before they meet in the EU summit on January 30.

Also from the euro area, the Greek government sold 1.625 billion euros on Tuesday, from the planned 1.25 billion euros, of six-month notes with a decline in yield to 4.90% compared with 4.95% in December's auction.

This week, Spain plans to sell bonds maturing in 2015 and 2016, while Italy is expected to auction 3-, 5- and 15- year bills, where both countries may reach an aggregate bond selling of 262 billion euros in the first quarter, according to Deutsche Bank AG forecasts.

Concerning the EUR/JPY pair, it rose for the second day trade around 98.33 after recording a high of 98.41 and a low of 97.94.

The trading range for the week is expected among the key support at 94.50 and the key resistance at 99.60.

Moreover, the dollar index, which tracks the dollar movements versus a basket of major currencies, fell to touch a low of 80.76 compared with the day's starting level of 80.97.

Moving to the GBP/USD pair, it also showed a rebound amid the absence of fundamentals from the U.K.

The pair is currently hovering around 1.5465 while recording a high of 1.5499 and a low of 1.5444, while the trading range for this week is among key support at 1.5075 and key resistance at 1.5780.