The euro inched higher against the dollar on Friday as Greece said it was getting closer to a deal on its debt, which could stave off default for the cash-strapped country.
On Friday, a Greek government official said the country was ready to submit counter-proposals and is closer than ever to an agreement with its creditors.
"The news gives hope Greece can avert default and stay in the euro zone," said Joe Manimbo, senior market analyst at Commonwealth Foreign Exchange in Washington. "The euro seems to be at its best when there is good news on Greece."
Earlier in the session, the euro had been under pressure after German Chancellor Angela Merkel said a strong currency made it harder for the likes of Spain and Portugal to reap the benefits of economic reform.