The euro has reached a new high for the year against the greenback, fueled by expectations that increased European defense spending will stimulate the region’s economy.
The common currency rose 0.5% to $1.0548, its highest point since December 10, according to Investing.com’s data.
The European Union announced plans to propose extending €150 billion ($158 billion) in loans to enhance the continent’s defense spending. This move has contributed to the euro’s significant rise, nearly 4% from a two-year low it experienced just a month ago.
The increased defense capabilities in the continent are seen as a key factor in the euro’s recent recovery.
