Euro up against dollar ahead of ECB meeting

The euro regained strength against the dollar Tuesday, buoyed by stronger-than-expected eurozone data just two days before a key meeting of the European Central Bank on monetary policy.

At 22H00 GMT, the euro was valued at $1.3582, up from the $1.3514 seen late Monday.

The euro picked up strength following the publication of data on activity in the services sector that was "better than expected" and "eased concerns about European growth," said Kathy Lien, managing director at BK Asset Management.

Traders were heartened by news that private business activity across the eurozone rose to a 10-month high in January, indicating strength in the industrial and services sector.

The Purchasing Managers' Index published by London-based Markit researchers, a survey of thousands of eurozone companies, logged 48.6 in January, better than the December level of 47.2 and above estimates of 48.2.

Trading on Tuesday marked a sharp shift from the previous day, which saw the dollar rise against the euro amid anxiety over political conditions in Spain and Italy.

On Tuesday, the yen fell against both the dollar and the euro after news that Bank of Japan governor Masaaki Shirakawa will step down "slightly earlier" than expected, according to Wells Fargo.

The euro traded at 127.13 yen Tuesday, up from 124.75 on Monday. The dollar traded at 93.61 yen, up from 92.31 the day before.

The British pound traded at $1.5659, down from $1.5764 on Monday.

The dollar traded at 0.9077 Swiss francs Tuesday, down from 0.9080 a day earlier.