LONDON: The euro rose to a session high and moved closer to recent peaks against the dollar on Tuesday, after the European Central Bank said that its chief Mario Draghi will not be attending this weekend's Jackson Hole symposium.
The dollar was also hurt by a media report which flagged the risks of a US downgrade, traders said.
The euro rose to a session high of $1.2562 on trading platform EBS, up from around $1.2540 before news emerged that Draghi was not going to attend the Jackson Hole conference due to a heavy workload. It struck a seven-week high of $1.2590 on Aug 23.
"There's talk of a downgrade for the US, although we haven't seen anything concrete on that yet," said a London-based FX trader, who also cited buying by Middle East investors that triggered stops at $1.2555-60.
Another trader said the news that Draghi was not attending the Jackson Hole conference also kept a bid on the euro.
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