2018.01.1602:08:00UTC+00Euro Near 3-Year High; Dollar Wallows at More than 3-Year Lows

The euro was near a 3-year high on growing expectations that the European Central Bank could taper its massive monetary stimulus as well as optimism on the bloc's economic outlook.

The common currency rose to $1.2261, within sight of its Monday peak of $1.2296, its strongest peak since December 2014.

The euro moved higher on Monday and German benchmark bond yields touched session peaks after European Central Bank rate-setter Ardo Hansson said the central bank could end its bond purchase scheme in one go after September if the economy and inflation develop as expected.

Adding to the euro's ascent, data showed the trade surplus in the 19-country euro area increased to its highest level in eight months, indicating companies were so far weathering the impact of a stronger currency.

The dollar index, which tracks the greenback against a basket of six major rival currencies, remains at more than three-year lows. It was last down 0.5 percent at 90.541, after falling as low as 90.279 on Monday, its deepest trough since December 2014.

Against the yen, the dollar gained 0.4 percent at 110.97. It dropped as low as 110.32 yen on Monday, which was its weakest level since Sept. 15.

Japanese Finance Minister Taro Aso recently said that he did not see problems with the dollar weakening to around 110.80 yen, but that big swings in currencies would be problematic.