Wednesday saw the common currency of the European Union drive to its seven-month height against the world's reserve currency after stronger-than-anticipated survey results were released by a prominent German think tank, Bloomberg reports.
Business confidence is on the rise in the nation hosting the euro zone's biggest economic system, which helped propel the euro higher for an eighth-straight trading session against the greenback. The Ifo business climate index trumped economists' projections as about 7,000 business executives' survey responses pushed up the metric to 102.4 this month after last month checking in at 101.4.
"The Ifo helps create more risk appetite in general and positive equity markets, which is positive for the euro. It adds to the upwards momentum in euro/dollar and euro/yen," FX strategist Niels Christensen with Nordea told Reuters on Wednesday.
The survey has now grown for two straight months, a stark contrast from having plunged to its lowest rate in two-and-a-half years in October.
The euro also gained against the Japanese yen, striking its 16-month high as policy makers with the Bank of Japan kick off two days of meetings on Wednesday, Reuters reports.
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