The euro stayed well-bid on Tuesday, scaling a fresh five-year high on the yen and a six-week peak against the dollar as expectations for further stimulus from the European Central Bank continued to fade.
ECB Executive Board member Yves Mersch on Monday played down the prospect of following the Federal Reserve and Bank of Japan down the path of asset purchases, saying such action poses immense challenges for the central bank.
In fact, the ECB's balance sheet has been shrinking over the past year as the euro zone's financial system stabilizes, in contrast to the Fed and the BOJ which continue to print money through asset purchases.
That provides underlying support for the common currency, as does the euro zone's current account surplus, despite sluggish economic growth in the currency bloc.
The euro last traded at 141.95 yen after touching 142.085, a high not seen since October 2008. Against the dollar, the common currency bought $1.3755, up slightly from late U.S. levels and creeping ever closer to a two-year high of $1.3833 set in late October.