The euro rose to a three-week high against the dollar on Friday, heading for its second straight week of gains, on hopes that Greece's lenders were nearing an agreement to release further aid to help the debt-stricken country. A rise in German business morale also boosted the euro, although analysts said any euro strength should be limited given the bleak economic outlook for the euro zone as a whole and expectations that the European Central Bank will have to ease policy further.
The euro rose as high as $1.2943 on Reuters data, breaking above resistance at $1.2910, its 55-day moving average. It was last trading at $1.2941, up 0.5 percent on the day. It also hit a seven-month high of 106.73 yen and was last at 106.65 yen, up 0.4 percent. The dollar fell 0.1 percent to 82.39 yen, pulling away from Thursday's high of 82.82 yen, its strongest level since early April.