Euro Surges to New Heights Amid U.S. Dollar Retreat

The euro climbed to $1.20 for the first time since 2021, as investors moved away from the U.S. dollar. This shift has been influenced by President Trump's trade policies. European currencies like the Swiss franc and Swedish crown have also seen significant gains in the past year.

The euro has surged to $1.20 against the U.S. dollar for the first time since mid-2021. This increase is part of a broader trend where investors are distancing themselves from the U.S. dollar, a movement accelerated since the beginning of the year.

Historically, the euro has hovered just below the $1.20 mark since its introduction in 1999, although it's still below its 2008 peak of $1.60. Market observers point to President Donald Trump's unpredictable trade, foreign, and economic policies during his second term as reasons for the shift in investor sentiment away from dollar-backed assets.

This sentiment doesn't benefit the euro alone; other European currencies have also seen upticks. Over the past 12 months, the euro has appreciated by 14%, the Swiss franc by 15%, and the Swedish crown by nearly 20%, marking a significant shift in currency values.

(With inputs from agencies.)