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The euro edged higher against the dollar on Tuesday as the arrest of a slide in Chinese shares boosted risk appetite, but its gains were limited by uncertainty over whether officials will agree to beef up a euro zone safety fund this week. The euro dipped initially but later pared its losses against the dollar as Chinese shares showed signs of stabilising after the previous day's 3 percent slide, lending some support to risky assets.
The euro's rise against the dollar picked up some steam on stop-loss buying, helping push the single European currency 0.1 percent higher on the day to $1.3305, up from an intraday low of $1.3254. But doubts that euro zone policymakers would reach a quick decision on whether to enhance a rescue fund aimed at quelling a sovereign debt crisis, which has forced Greece and Ireland to take bailouts and put nations such as Portugal and Spain under heavy pressure, remained the euro's Achilles' heel.