Euro rallies after strong German, French GDP data

The euro rose against the dollar on Friday after strong growth data in France and Germany bolstered speculation that a healthy euro zone economy would keep interest rates in the region higher than U.S. ones.

 The single currency jumped to a session high of $1.4340 after higher-than-expected first-quarter GDP data in the two countries prompted demand for the euro from Asian sovereign names, European real money accounts and leveraged funds.

 Market participants said higher shares and commodities also helped to stoke demand for riskier assets after they took a hit this week, and that the single currency may gain more during the day as investors continue to cover short euro positions. more