Early trade in New York: Euro at eight-week high

The euro hit an eight-week high against the dollar on Wednesday on growing hopes eurozone officials will navigate the sovereign debt crisis, with further gains seen if key levels are sustained. Reports of Asian sovereign buying and continued short-covering pushed the single currency above $1.35, a key technical level. Comments on Greece's debt woes caused it to briefly fall below this threshold in New York trade.
The euro, shared by 17 countries, climbed more than 1 percent to hit an eight-week high of $1.3538, according to Reuters data and last traded at $1.3484. Front-end euro/dollar volatility has remained subdued in the last few days, settling between the 12.0 percent to 13.0 percent range. On Wednesday, one-month volatility on the currency pair traded at 12.55 percent, sliding from as high as 14.0 percent at the beginning of the year.