The euro rallied to a one-week high against the dollar and four-week peaks against the yen and sterling on Tuesday after a media report indicated Germany was open to a precautionary line of credit for Spain.
The euro had already firmed, helped by persistent talk Spain may soon ask for a bailout and tentative signs of improving confidence in the German economy, but the currency jumped when Bloomberg News reported that two German lawmakers said Germany is "open to Spain seeking a precautionary credit line from Europe’s rescue fund."
Source: Reuters. Read full article. (link)