The euro held gains against the dollar after Greece reached a deal on extending its bailout program, tempering speculation the nation will exit the currency region.

The 19-nation single currency erased a 0.8 percent decline on Feb. 20 after euro-area finance ministers reached an agreement that would keep bailout funds flowing to Greece for another four months. Options traders are willing to pay the most in a month to guard against losses in the euro with Greece having until the end of Monday to complete a list of policies in return for the continued funding.

The euro fetched $1.1385 at 8:49 a.m. in Tokyo, compared with $1.1381 on Friday, when it gained 0.1 percent. It advanced as much as 0.3 percent on Monday. Against its Japanese counterpart, the shared currency was little changed at 135.56 yen, after rising 0.2 percent at the end of last week.

The premium on one-week contracts to sell the euro versus the dollar, over those to buy, touched 1.65 percentage points, the most since Jan. 19, according to 25-delta risk-reversal data compiled by Bloomberg.

Source : Bloomberg