The euro rose to a one-week high against the dollar and four-week peaks against the yen and sterling on Tuesday after an early media report indicated Germany was open to a precautionary line of credit for Spain.
The euro was already higher, helped by persistent talk Spain may soon ask for a bailout and tentative signs of improving confidence in the German economy, but the single 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."
The euro was last up 0.6 percent on the day at $1.3028, with the peak at $1.3060, its highest level in a week. A break above $1.3072 would target the mid-September high of $1.31729. The dollar rose to 78.95 yen, its strongest since September 19. It was last at 78.93 yen, up 0.4 percent.