The euro resumed its recent rally versus the dollar on Monday, even after euro zone inflation data came in slightly cooler than expected.
Still, the European Central Bank is expected to move faster on hiking interest rates than the Federal Reserve in the U.S.
The euro has been bid higher versus the dollar in recent weeks, as European officials expressed growing concern with price pressures.
The euro rose to $1.3850 versus the dollar, its highest in four weeks. A move slightly higher would take the euro to its highest since November.
Early gains took to the euro to Y113.35 versus the yen, up from below Y112.
The euro leveled off against the sterling, extending a long run of choppy trading. The pair hovered near GBP 0.8525, little changed during the last four months.
In economic news, Eurozone inflation rose less than expected in January, final data from Eurostat showed.
Consumer price index rose 2.3 percent annually in January following the 2.2 percent increase in December. That was revised down from 2.4 percent reported in a flash estimate released on January 31.
Here in the U.S., personal income in the U.S. increased by much more than anticipated in the month of January, according to a report released by the Commerce Department on Monday, with the income growth due in large part to a reduction in payroll taxes.
The Commerce Department said personal income surged up by 1.0 percent in January following a 0.4 percent increase in December. Personal income had been expected to show a much more modest increase of about 0.4 percent.