The European common currency touched $1.0563 in early Asia trade, after rising 1.1% overnight, its largest day of percentage gains since March.
These gains pushed the dollar index, which measures the greenback against six peers, as low as 103.18 in early Asia,its lowest in nearly two weeks. Shanghai on Tuesday achieved its long-awaited milestone of three consecutive days with no new COVID-19 cases outside quarantine zones having set out its clearest timetable yet for exiting a lockdown the day before.
Also reflecting the improved risk sentiment, equities jumped overnight and US benchmark Treasury yields gained, and were last at 2.9878%.
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