Euro rises to US$1.20 for the first time since mid-2021

[NEW YORK] The euro strengthened to US$1.20 for the first time since mid-2021 on Tuesday, driven by an investor retreat from the US dollar that has gathered pace since the start of this year.

The euro rose 1.4 per cent to US$1.2049, its highest since June 2021.

The single currency has historically traded just below US$1.20 on average since its creation in 1999. But it’s much lower than the record US$1.60 in 2008.

President Donald Trump’s erratic approach to trade, international relations and fiscal and monetary policy since the start of his second term in 2025 have made some investors wanting to limit exposure to assets like the dollar itself.

European currencies have been major beneficiaries of this reduction in dollar exposure. In the last 12 months, the euro has gained 14 per cent, while the Swiss franc has risen 15 per cent and the Swedish crown has gained almost 20 per cent in value. REUTERS