The European single currency climbed past 1.41 dollars on Tuesday after news of soaring investor confidence in Germany, Europe's largest economy, analysts said.
Approaching midday trade in London, the euro rallied to 1.4128 dollars from 1.4077 dollars in New York late on Monday, when it had touched 1.4014 -- which was the lowest level since July 30.
Against the Japanese unit, the dollar advanced to 95.09 yen from 94.46 yen late Monday.
German investor confidence bounded higher in August, the ZEW survey showed on Tuesday, less than a week after data showed Europe's biggest economy emerging from recession sooner than expected.
The closely watched ZEW index, based on a survey of institutional investors and analysts, rose 16.6 points to reach 56.1 points, smashing expectations by economists polled by Dow Jones Newswires of a rise to 47.3 points.