The euro rose to a new high of $ 1.2833 after the release of U.S. data on applications for unemployment benefits, and an index of business activity in the manufacturing sector.

U.S. employment report was better than expected and reflected the decline of initial applications for benefits to 410 million in line with expectations. Continuing claims also fell to 3.337 million more than expected. However, the Labor Department said that the figures may be distorted because of Hurricane Sandy.