Novinite.com
28 Jan 2026, 13:49 GMT+10
For the first time since the middle of 2021, the euro climbed above the $ 1.20 mark, supported by a noticeable shift away from the US dollar by global investors. The common European currency has been strengthening steadily since the start of the year, reflecting changing market sentiment.
On the day in question, the euro advanced by 1.4 percent, reaching 1.2049 dollars, its strongest level since June 2021. Despite this milestone, the currency is still trading below its long-term average. Since its introduction in 1999, the euro has typically been valued at under $ 1.20. It also remains far from its historic peak of around $ 1.60 per euro, recorded in 2008.
Market analysts link the renewed weakness of the dollar to uncertainty surrounding US economic and foreign policy. Since the beginning of President Donald Trump's second term in 2025, his unpredictable stance on trade, international relations, as well as fiscal and monetary policy, has prompted some investors to reduce their exposure to dollar-denominated assets.
As a result, several European currencies have benefited from this rebalancing. Over the past year, the euro has gained roughly 14 percent against the dollar, while the Swiss franc has appreciated by about 15 percent. The Swedish krona has posted the strongest rise among them, climbing by nearly 20 percent.
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