The euro held steady against the dollar and rose versus the yen on Monday as a strong first estimate of second quarter euro zone growth boosted expectations for higher interest rates. The dollar rose to its highest levels in more than two weeks against the yen as robust U.S. retail sales data last week fanned expectations the Federal Reserve might resume raising interest rates soon. The euro zone economy grew at its fastest rate in six years in the second quarter against the previous three months, data showed on Monday, beating market expectations and reinforcing views that the European Central Bank would raise rates again after a 25 basis point hike earlier this month. Individual country data showed the German economy grew at its fastest rate in over five years in the second quarter, while growth in France was at its fastest pace in almost six years. "The market is not fully priced yet for (an) October (hike), but the data has been pretty solid and the fact that the ECB has now upped the ante to a two-month spacing (between hikes) suggests they will probably do that going forward," Westpac currency strategist Geoff Kendrick said. Investors expect the ECB to raise interest rates once or twice more this year after it increased them to 3 percent in August. By 1148 GMT, the euro was steady against the dollar at $1.2720 , while the dollar was up a quarter percent to 116.59 yen . The euro was up around 0.3 percent at 148.35 yen after hitting a record high around 148.60 last week, according to Reuters data.