Euro rallies as IMF beef up lending instruments

NEW YORK: The euro rallied against the dollar on Tuesday after the International Monetary Fund beefed up its lending instruments and introduced a new six-month liquidity line, throwing help to countries at risk from the euro zone crisis.

The IMF said its more flexible Precautionary and Liquidity Line (PLL) would act as "insurance against future shocks and as a short-term liquidity window to address the needs of crisis bystanders."

The euro was last up 0.3 percent at $1.3535, moving closer to the global session peak of $1.3568.