The euro picked up against the dollar as it shrugged off concerns over political changes in Russia, while strong German trade data reinforced signs of economic recovery. The single European currency closed at $1.0737, up from $1.0706 on Monday.

The trade data showed Germany's surplus widening in June to €7.0 billion (£5.5 billion), more than double the figure for May and clearly ahead of last year.

Meanwhile, Bundesbank council member Mr Guntram Palm said the euro had potential to keep appreciating due in part to the euro area's current account surplus which contrasted with an increasing US deficit. Mr Palm said the euro had "very good" prospects to be a solid and stable currency because the euro zone had price stability.