The euro rose for a third day against the US dollar on the view that European finance ministers will settle their remaining differences over a Greek bailout when they meet later today.

Euro-area finance ministers, meeting in Brussels this afternoon, are expected to approve a €130 billion bailout package for Greece to help the embattled Mediterranean country stave off a disorderly default. The euro also benefited from a general increase in risk appetite, revived by China’s decision to lower its reserve ratios for their banks (the proportion of cash that lenders must set aside).

The reserve requirement will be reduced by 50 basis points, effective 24 February, to 20.5%. Meanwhile, economists at Standard Chartered expect at least three more reductions in the reserve requirement this year, while HSBC Holdings see a minimum of two reductions. The common currency was trading at $1.3208 after reaching a high of $1.3238 earlier today. The euro has been on an upward trend over the last few days, finding strong support at the exponential 20-day moving average, which currently resides at $1.3144. If the Greek bailout talks are successful today, we could see the euro break the $1.3306 level of resistance.