Euro rose to its highest level since spring 2018

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Euro and dollar bills

The majority of global transactions are processed in these two currencies.

(Photo: Reuters)

Frankfurt The rate of the euro rose sharply on Tuesday. In the afternoon, the price reached its highest level since May 2018 at 1.2020 US dollars. Market observers spoke of a weak dollar that had given the euro a boost in return. The European Central Bank (ECB) set the reference rate at 1.1968 (Monday: 1.1980) dollars. The dollar cost 0.8356 (0.8347) euros.

At the beginning of the week the euro had risen above the $ 1.20 mark at times, but then lost ground again and was only trading at $ 1.1920 on Tuesday night.

The renewed strong price increase is a consequence of a broad-based dollar weakness. The American currency has recently come under pressure against almost all major currencies. The reason for this is that investors are more willing to take risks, which has resulted in weaker demand for comparatively safe investments such as the US dollar. The Japanese yen, which is also considered a safe haven, was under pressure on Tuesday.

Once again, it was hopes for a quick introduction of effective corona vaccines that made the financial markets more risk-taking. These are used to speculate on stronger economic development in the coming year.

The hope of a strong recovery in the global economy is also supported by the latest economic data from China. In the second largest economy in the world, the mood in medium-sized and small industrial companies surprisingly brightened in November. A corresponding sentiment indicator rose to its highest level in ten years.

For other major currencies, the ECB set the reference rates for one euro at 0.89798 (0.89845) British pounds, 124.92 (124.79) Japanese yen and 1.0836 (1.0839) Swiss francs. The troy ounce of gold (31.1 grams) was traded at $ 1808 in London that afternoon. That was about $ 31 more than the day before.

More: EU Parliament and governments agree on EU budget



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