The euro leaped to its highest level against the US dollar in six weeks on Monday as concerns abated about debt-burdened Greece and Spain while Chinese data allayed worries about global economic growth. The single currency shared by 17 countries, which was already gaining on signs Germany may be open to a Greek debt write-down, hit new highs after Spain formally asked for European funds to recapitalize its banking sector.

Greece said it would spend 10 billion euros ($13 billion) to buy back bonds at a price range that topped market expectations, boosting hopes it can cut its ballooning debt and unlock long-delayed aid. The euro climbed to $1.3073, its highest since October 23, before paring gains to last trade up 0.4 percent on the day at $1.3038. The dollar last traded flat against the yen at 82.34, retreating from last month's peak of 82.82 yen.

Copyright Reuters, 2012