Euro rallies against the US dollar, hitting highest level since November

The euro zipped higher against the US dollar on Thursday, rising to the highest level since the day following the US election last November.

The common currency climbed 0.85 per cent to $1.0979 in mid-afternoon action in New York.

Sentiment has turned markedly more bullish on the euro, which is up 2.8 per cent over the past month as the currency bloc’s economy has looked to be on increasingly solid footing. A survey of business activity in the eurozone that was released on Thursday underscored that thesis, suggesting economic growth in the region is running at the highest rate in six years.

The brightening in the eurozone comes as the US economic outlook has been muddied by a disappointing first quarter and continuing doubt over whether President Donald Trump will be able to pass the pro-growth initiatives that he promised during the campaign.

Highlighting shifting tides, several investment banks have recently abandoned their calls for euro-dollar parity this year, citing better growth and inflation in the eurozone.

Elsewhere, the buck slipped 0.26 per cent against the Japanese yen to ¥112.45, and 0.42 per cent against the pound to $1.292.

Meanwhile, many emerging-market currencies were in the red, tracking falls in the price of crude oil. The Canadian dollar and Norwegian krone were also pressured by the crude woes.