The euro rose against the dollar Friday on speculation that the International Monetary Fund may help with Europe's debt crisis. Traders are also buying euros because borrowing rates in Italy and Spain eased.
The rumor is that the European Central Bank may loan money to the International Monetary Fund to help bail out troubled nations, said Kathy Lien, director of currency research at GFT.
"Traders are desperate for good news and this is one of the very few proposals that could actually work if not for opposition from the Germans," said Lien.
The euro rose to $1.3518 in late Friday from $1.3466 late Thursday.
Easing borrowing rates in Italy and Spain also boosted the euro. That was a sign investors are less worried about a default by those countries. The euro has been falling against the dollar for four days as borrowing rates rose in those countries.
The British pound $1.5787 from $1.5758. The dollar rose to 76.97 Japanese yen from 76.95 Japanese yen. It fell to 0.9177 Swiss franc from 0.9198 Swiss franc and to 1.0266 Canadian dollar from 1.0280 Canadian dollar.