The euro hit a one-week peak on Tuesday as Germany rang up its best month for exports in a year in August and expectations grew that the European Central Bank may consider scaling back its asset purchases.
The currency's rise this year had lost some momentum in recent days following Catalonia's Oct. 1 referendum to break away from Spain. The euro has fallen more than 3 percent against the dollar over the last month, but underlying economic data has shown resilience.
"The focus is shifting away from the political news to the economic data and that is turning to be euro positive, and we should see the currency supported before the ECB meeting," said Viraj Patel, an FX strategist at ING Bank in London.
German exports rose 3.1 percent in August, their strongest month in a year, putting Europe's economic engine on track for a solid 2017. The euro gained 0.6 percent to $1.1805, its strongest since Oct. 2, after overnight comments from Sabine Lautenschlaeger, an ECB executive board member, calling for the ECB to roll back asset purchases in 2018.
It was last up 0.03 percent at $1.809.