Euro Jumps To 2-month High Against Dollar

Published February 23, 2012 7:36PM (EST)

NEW YORK (AP) — The euro jumped to a two-month high against the dollar after business confidence surged in Germany.

The euro rose to $1.3333 in midday trading Thursday from $1.3244 late Wednesday. The euro rose as high as $1.3342, its highest point against the dollar since Dec. 12.

Germany's Ifo institute's confidence index rose to 109.6 points in February from 108.3 in January. Economists had expected a smaller rise, to 108.8.

Germany is Europe's largest economy. Investors interpreted the results of the closely-watched survey as a sign that Germany is recovering even as many other countries that use the euro are struggling.

The dollar fell to 80.10 Japanese yen in afternoon trading Thursday, a day after the dollar hit a seven-month high against the yen. The dollar was worth 80.24 yen late Wednesday.

The yen has been falling against the dollar ever since the Bank of Japan announced a surprise increase of its economic stimulus program last week.

In other trading, the British pound rose to $1.5711 from $1.5671. The dollar fell to 0.9040 Swiss franc from 0.9109 Swiss franc and to 99.81 Canadian cents from 99.95 Canadian cents.


By Salon Staff

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