Euro holds firm after ECB stress test

The euro gained 0.3% to US$1.2707 after the European Central Bank's stress tests found smaller capital shortfalls among European banks than expected - AFP Photo.

TOKYO: The euro held firm on Monday after the European Central Bank's stress tests found smaller capital shortfalls among European banks than expected, lending a tailwind to the recovery in risk sentiment over the past week.

Twenty-five out of the euro zone's 130 top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the ECB said on Sunday.