Euro firms as investors expect a boost in ECB stimulus

The euro hit multi-month highs against other currencies on Thursday as investors expected the European Central Bank to expand its bond-buying programme later in the day.

The euro’s rally helped push the dollar’s index to 97.450, its lowest level in almost three months. This was on top of easing lockdowns worldwide that weakened the appetite for the dollar.

The euro traded at $1.1220 on the dollar. It stood at 122.21 against the Japanese yen and at 1.0793 on the Swiss franc.

The European Central Bank is expected to increase its 750 billion euro Pandemic Emergency Purchase Programme in support of the euro zone’s economy.

Meanwhile, optimism for economic recoveries still dominated the market mood, despite the growing U.S.-China tensions and U.S. protests.

The dollar stood at 108.96 on the safe-haven yen. The British pound sat at $1.2576, while the Australian dollar slid to $0.6895.