The European currency touched its best level for more than two months against the U.S. dollar. It also remained solid against a basket of currencies after a released data which suggested a strong business confidence in Germany last Monday.
The German business confidence index calculated by the Ifo economic institute has touched one its best level this month of November. This has suggested a much firmer growth in Europe’s biggest economy. The positive figure was later followed by upbeat developments on their government after German Chancellor Angela Merkel was given a political lifeline by the Social Democrats.
Merkel’s fourth term was pushed into skepticism last week after the collapsing of the coalition meetings between the Green and pro-business Free Democrats (FDP). This helped eased the doubts regarding the unstable government in Germany as the conservative party of Merkel agreed to go through a “grand coalition” with the SPD on Sunday.
Looking at the common currency, it was only marginally moved at $1.1929 after it notched a two-month high of $1.1946. Euro edged up as high as 3.2 percent since it slipped to a 3-1/2-month decline of $1.1553 just this November.
Meanwhile, against its Japanese counterpart, the common currency was higher at 133.24 yen. This is considered it best level since November 16. The euro also surged close on this month’s peak of 0.9014 against the sterling to 0.8978 pounds.
On other currency news: the index which measures the value of the U.S. currency against its major peers, the dollar index, traded close to the flat line at 92.816.