NEW YORK, United States?The euro regained its footing Tuesday as financial market tensions cooled amid speculation the European Union will help Greece resolve its fiscal crisis.

At 2200 GMT, the euro climbed to $1.3791 from $1.3648 late in New York on Monday.

The dollar rose slightly to 89.63 yen from 89.28 late Monday.

"The euro traded sharply higher supported by rumors of a Greek bailout and short covering," said Michael Malpede at Easy Forex.

Malpede said a report that European Central Bank president Jean-Claude Trichet would return one day early from a central bankers' meeting in Australia to attend an emergency economic summit Brussels "fueled speculation that a Greek bailout plan may be soon announced."

The European Commission on Tuesday urged EU leaders to offer clear support for Greece in return for real efforts from Athens to resolve its budget crisis, ruling out the need for help from the International Monetary Fund.

The Financial Times Deutschland reported that German Finance Minister Wolfgang Schaeuble was working on both a bilateral basis and at the European level on putting together a package to help Athens.

Some said the move might be a prelude to solution to Greece's debt problems while others were skeptical.

Camilla Sutton at Scotia Capital said the move could ease pressure on the euro but only if there were a clear plan to help the weaker eurozone members.

"The end to the current bout of risk aversion and dollar strength could come abruptly or it could take weeks if not months to end," she said.

"If the EU provides markets with a clear strategy for how it will handle weaker members going forward, we would expect to see stabilization in markets. However, without a significant event that changes the course of investors? appetite it will be more difficult to pick the top in the dollar rally."

Others said they were doubtful about the prospect of an accord and whether it could be really effective unless it tackled the underlying problem of government overspending.

Patrick O'Hare of Briefing.com said "we're not sure why there would be a true sense of relief over such headlines.

"An aid package could help... yet it still doesn't correct the crux of the problem, which is a government that spends a lot more than it collects in taxes."

The euro has been hit by worries that the debt-ridden countries Portugal, Ireland, Italy, Greece, and Spain may be unable to restore stability to their public finances and so call into question the eurozone's credibility.

Last Friday, the euro tumbled to $1.3586, the lowest level since May 20, 2009.

In late New York trade, the dollar stood at 1.0639 Swiss francs, down from 1.0733 Monday.

The pound was at $1.5713 after 1.5579.