The euro rose against the dollar Monday on word that French banks will accept a debt rollover to help Greece. The proposal helped ease fears that Greece could default on its debt.
The plan is for the banks to reinvest their Greek debt holding into new 30-year bonds. It would give more funding and time for Greece to manage its debt.
UBS currency strategist Chris Walker said the euro began its rise against the dollar after French Finance Minister Christine Lagarde said a first draft of the deal was ready.
The plan comes ahead of Wednesday's vote by the Greek parliament on whether to pass austerity measures. Greece needs the measures to pass in order for the troubled country to get its next installment of funding from last year's 110 billion euro bailout package. Many economists are expecting that it will pass, and Greece will avoid a default.
The euro rose to $1.4266 late Monday from $1.4171 Friday.
Meanwhile, the U.S. Commerce Department said Americans stopped spending more in May for the first time in a year. Consumer spending fell 0.1 percent last month as high gas prices and unemployment hit household budgets.
In other trading Monday, the British pound rose to $1.5979 from $1.5974 late Friday. The dollar fell to 98.68 Canadian cents from 98.80 Canadian cents and fell to 0.8365 Swiss franc from 0.8377 Swiss franc. But the dollar rose to 80.97 Japanese yen from 80.52 Japanese yen.