The euro rebounded from seven-week lows on Monday, boosted by sovereign demand after last week's sharp sell-off, as optimism grew a European Union meeting would support Greece and avert a restructuring of the country's debt. German Chancellor Angela Merkel said as much on Monday as she voiced opposition to debt restructuring by any eurozone country before 2013. Such a restructuring, she said, would be "incredibly damaging" to the eurozone's credibility.
The euro rose as high as $1.42450 on trading platform EBS and was last at $1.42370, up 0.8 percent. Earlier, it fell to $1.40481, the lowest since late March. The euro has fallen roughly 6 percent from a 17-month peak of $1.4940 hit less than two weeks ago as peripheral debt concerns resurfaced, but $1.40 seemed to be a key support level.
That level represents the euro's 200-week moving average, while the 100-day moving average lies at $1.3922. Below that is the 50 percent retracement of the euro's January to May rally, near $1.3900. The greenback rose against a basket of six major currencies to a six-week high of 76.001. earlier, but was last down 0.6 percent at 75.299.
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