On Thursday, euro rose to session highs against the dollar after data showed that business confidence in Germany improved this month, while the comments of the head of the European Central Bank, which lowered the prospects for further easing of monetary policy in the short term, also strengthened demand for the currency.
The single currency strengthened after German research institute - Ifo said that its business climate index in Germany rose this month to 108.5 from 108.4 in August. The index is the highest in four months and exceeded growth forecast to 108.0.
The EUR/USD peaked at 1.1223 after it was at 1.1210 before the release of the report.
The euro strengthened considerably after on Wednesday, ECB President Mario Draghi downplayed the need for further easing of monetary policy.
Draghi said that the ECB will need more time to decide to increase the incentive, but confirmed that the bank is ready to increase its asset purchase program if necessary.
In March, the ECB launched its program of quantitative easing with a monthly volume of € 60 billion in an attempt to overcome the stable low levels of inflation in the Eurozone. Duration of the program is planned to at least September 2016.
The annual rate of inflation in the Eurozone in August was 0.1%, considerably less than the ECB's target of just below 2%.
The euro fell slightly against the yen, EUR/JPY weakening by 0.09% to 134.38.
The index of the euro, which measures the strength of the single currency against a basket of other currencies, is at 89.38.
Investors are preparing for the speech of the Federal Reserve head, Janet Yellen, scheduled for the end of the session and having the ability to bring more clarity to the last week decision to leave interest rates at current levels.
Besides Yellen speech, investors' attention will also be focused on a few key US reports, including data on initial applications for unemployment insurance, the volume of orders for durable goods and volume of home sales in the primary real estate market.
The USD index, which tracks the US currency against a basket of six major rivals, is at 96.29.