Euro stands tall

SINGAPORE: The euro on Tuesday held onto gains made the previous day when traders revived bets that the European Central Bank would raise interest rates sooner than previously thought.

The euro last changed hands at $1.2341, after gaining 0.4 percent on Monday.

The common currency had drawn strength on Monday from a source-based Reuters report that ECB policymakers are shifting their debate to how steeply interest rates should rise and how to phase out a bond buying programme after purchasing 2.5 trillion euros in over three years.

Sterling also stood tall after setting a one-month high against the dollar on Monday, as Britain and the European Union agreed to a 21-month post-Brexit transition period and a potential solution to avoid a "hard border" for Northern Ireland.

Sterling edged up 0.1 percent to $1.4035. On Monday, the pound had risen to as high as $1.4088, its strongest level since Feb.16. The strength in euro and sterling helped weigh on the dollar, which last stood at 89.870 against a baske t of six major currencies, down from Monday´s intraday high around 90.345.