Bini Smaghi's term ends on May 31, 2013 and he said he will join Harvard University on January 1, 2012.

The euro last traded up 0.4 percent at $1.3592 , according to Reuters data. It had been trading above $1.36 before the news.

Easing Italian bond yields lifted overall risk sentiment, with U.S. stocks rallying while safe-haven Treasuries fell.