The euro rose against the US dollar on Thursday on optimism European policymakers will be able to control a political and debt crisis in Portugal, though technical resistance could cap near-term upside. The euro remained resilient, rising above $1.42 as traders said most of the selling on concerns about Portugal had already occurred.
Still, upside for the euro looks limited, given option barriers around $1.4250 and strong resistance near $1.4280, the November high. The euro rose as high as $1.42206 on trading platform EBS, and was last up 0.7 percent at $1.4177. Traders noted semi-official and Middle Eastern bids around the day's lows and macro account demand. Offers were seen around $1.4220. The single currency had earlier hit a low of $1.40534 on EBS after Moody's downgraded 30 Spanish banks by one or more notches, though notably not the biggest players, Santander and BBVA. Against the yen, the dollar was little changed at 80.95 yen.
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