The euro rose almost 1% to $1.4203 Monday morning, its highest level against the dollar since early June.

The British pound rose to $1.6466, while the dollar gained slightly against Japanese currency to trade at 94.4850 yen.

Prospects of a deal to rescue U.S. lender CIT ( CIT) and optimism about corporate earnings appeared to increase investor appetite for risk , encouraging them to shift from the safety of the U.S. dollar.

The CIT board approved a deal with some of its major bondholders to help the struggling small business lender avert a bankruptcy filing through a $3 billion emergency loan.
This article was written by a staff member of TheStreet.com. The Associated Press also contributed to this report.