U.S. Dollar Drops Against Euro Again

The euro extended gains against the U.S. dollar on Friday after euro zone leaders came to an agreement on a competitiveness pact.

The euro hit $1.39 EUR=, up 0.8 percent on the day, according to Reuters data. Short covering played a major role in strengthening the euro zone single currency throughout the majority of the session, according to strategists.

The euro zone leaders reached a deal to establish higher retirement ages, more flexible labor markets and debt and deficit limits for euro zone countries.

The deal is expected to be officially adopted at a full 27-nation European Union summit on March 24-25.