The euro climbed to its highest level against the dollar for more than a year on Thursday, buoyed by a brightening of the eurozone economic outlook in recent weeks, and a broader retreat of the dollar as investors bet that the US Federal Reserve has almost completed its monetary tightening.
The euro surged 0.63 per cent to $1.1067 on Thursday, eclipsing a previous peak in February to bring the currency to its highest level since early April 2022.
Soaring gas prices following Russia’s invasion of Ukraine last year had sparked fears of a deep recession in Europe, but a warmer than expected winter and a reopening of the Chinese economy following pandemic-induced lockdowns have boosted business activity and consumer confidence, fuelling expectations of further interest rate increases.