The euro was higher against its most major counterparts in the European session on Monday, as a policymaker of the European Central Bank suggested that the central bank is planning to raise rates by 50 basis points in February and March to control inflation in the region.

In an interview with Dutch broadcaster WNL on Sunday, ECB governing council member Klaas Knot said that half percentage point increases in borrowing costs could be expected for both February and March meetings.

If the ECB is not done with that, there will be something to follow in May and June and so on, Knot added.

Olli Rehn, who is Governor of the Bank of Finland and a member of the Governing Council, said that there are grounds for significant interest rate increases this winter and the coming spring.

Investors await a speech by ECB President Christine Lagarde at the Deutsche Börse annual reception in Eschborn later today for further clues on the policy outlook.

The euro touched 1.0029 against the franc, its highest level in a week. Should the euro rises further, 1.05 is likely seen as its next resistance level.

The euro appreciated to a 6-day high of 0.8815 against the pound and near a 2-week high of 142.08 against the yen, from its early lows of 0.8752 and 140.47, respectively. The euro is seen facing resistance around 0.90 against the pound and 145.00 against the yen.

The euro advanced to more than a 9-month high of 1.0927 against the greenback around 2:05 am ET, but it has since eased to 1.0873. The currency is likely to face support around the 1.06 region, if it falls again.

The euro fell to 4-day lows of 1.6736 against the kiwi and 1.5536 against the aussie, after rising to 1.6872 and 1.5641, respectively in early deals. The euro may challenge support around 1.63 against the kiwi and 1.53 against the aussie.

The single currency retreated to 1.4524 against the loonie, off an early high of 1.4600. The next possible support for the euro is seen around the 1.42 level.

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