The euro bought US$1.3141 in morning European trading, slightly up from its level of US$1.3135 in New York late Monday, reaching six-week highs on concerns about nuclear issues and Iran.
Another driving issue is sentiment that the euro zone economy's growth is accelerating, a move that could cause the European Central Bank to lift interest rates higher through the spring.
Dutch central bank governor Nout Wellink said the economy is running at "full speed" and ECB executive board member Jose Manuel Gonzalez-Paramo described growth in the 13 countries that use the euro "as more broadly based than ever."
The ECB is schedule to meet March 8 and is expected to raise its interest rate from 3.5 percent to 3.75 percent, reports AP.
The British pound rose to US$1.9489 from US$1.9453.
The dollar bought 119.94 yen compared with 119.56 yen Monday a day before the Bank of Japan was set to meet and decide whether to increase interest rates from 0.25 percent.
According to a source in the Russian Defence Ministry, Russia started deploying elite commando units in eastern Libya. Russian GRU officers, mercenaries and advisors have arrived in Libya