Early trade in New York: Euro climbs versus dollar

The euro rose against the dollar for the first time in three days on Tuesday, buoyed by hopes of bond-buying by the European Central Bank to contain the debt crisis and expectations of further easing by the Federal Reserve. Investors awaited key events in the coming days and weeks, including a speech by Fed Chairman Ben Bernanke on Friday, a policy meeting by the ECB on September 6 and the German Constitutional Court's ruling on the euro zone's permanent bailout fund on September 12.
The euro rose 0.5 percent to $1.2559, having hit a session peak of $1.2576, not far from a seven-week high of $1.2589 set last Thursday, according to Reuters data. Strong resistance for euro/dollar lies around $1.2600, the 100-day moving average of 1.2601. The dollar fell 0.3 percent to 78.50 yen, with the pair stuck in a tight range of 78.77 and 78.44 yen.