Strong German labor figures for 2010 drove the euro back up above the dollar in Tuesday morning trading.
The euro, used by 17 nations, rose to $1.3397 from its opening value of $1.3340 and the $1.3364 it bought in late New York trading on Monday. That came after Germany's Labor Agency reported a year-on-year drop of 179,000 unemployed for 2010, as compared with 2009.
The euro had traded lower against the dollar on Monday on hopes for a U.S. economic recovery in 2011.
Since early November, the common currency has dropped about 8 percent against the dollar because of worries about a deepening debt crisis in Europe. The European Union had to bail out both Greece and Ireland in 2010, and markets remain fearful that other EU nations could follow.
In other currencies, the British pound bought $1.5599, up from $1.5491 late Monday, while the dollar fetched 82.10 Japanese yen, dipping from 81.65 yen.