Euro rises from 7-month low to hit session high vs dollar

NEW YORK: The euro rallied from seven-month lows against the dollar on Monday to hit session highs, with investors' short positions squeezed out after some positive headlines on the euro zone, analysts said.

It was a combination of news that boosted the euro including assurances from the French government on Monday that it can cope with the crisis in Greece. France reportedly has one of the largest bank exposures to Greece and could be vulnerable should Greece defaults on its debt.

European Central Bank President Trichet's statements earlier also helped. He said while the global economy is slowing down, there is no sign of a worldwide recession.

The euro rose as high as $1.36780 on trading platform EBS and was last at $1.36692, up 0.1 percent on the day. Earlier it dropped to seven-month lows at $1.34049.

Copyright Reuters, 2011