Euro hits four-month peak on dollar over EU stimulus hopes

The euro hit a four-month peak against the dollar on Wednesday on hopes that the European Union would implement economic stimulus and deeper fiscal integration to support the economy amid the pandemic.

The euro rose to $1.1423, its highest since early March. It hit a one-month high of 122.47 on the Japanese yen and was at a two-week high on the pound at 91.125 pence. 

The euro was lifted by hopes that the EU could agree on a rescue financing package to shield the economic zone from damage. 

The dollar index fell to a one-month low of 96.056.

The dollar fell further on Tuesday after U.S. consumer prices bounced 0.6% month-on-month. Also adding to the risk appetite was the positive result of the early-stage study of Moderna Inc’s experimental vaccine for COVID-19. 

The risk-sensitive Aussie gained 0.2% to $0.6985. The pound stood at $1.2571, while the yen sat at 107.27 on the dollar.

The Canadian dollar broke from a two-week low to C$1.3600.