The euro rose against the dollar on Tuesday after falling for three straight sessions, bolstered by solid regional economic data and comments from European Central Bank officials suggesting further monetary easing may not be imminent.
Quarterly lending data from the ECB showed euro zone banks loosened their lending standards more than expected over the last few months despite recent global market volatility. That lessened the need for the ECB to ramp up its 1 trillion euro asset purchase program, this week at least.
Separately, current account data from the euro zone showed portfolio inflows continued at a brisk pace, a factor that has been supporting the euro in recent months.
"What actually changed the euro was that banks have a lending survey and for October it was very positive — only pointed out positives and so there's no need for the European Central Bank to increase quantitative easing," said Juan Perez, foreign currency trader, at Tempus Consulting in Washington.