The euro rose near a year’s high against the dollar on Thursday, as the strength of the European economy contrasted with the risks of widespread banking crises in the United States and a confrontation over the debt ceiling and a possible recession there.
The highly vulnerable Australian dollar struggled to stay above the key 66 cents level.
The yen stabilized as the Central Bank of Japan began its two-day policy meeting, the first under its new governor Kazu Uida.
The dollar index, which measures the U.S. currency’s performance against six major currencies, the most influential of which was the euro, remained stable at 101.41, after falling 0.42% on Wednesday when it touched a nearly two-week low of 101.00.
Germany reversed growth forecasts by lifting yesterday, and the survey showed that consumer confidence continued to increase.