What factors contributed to the euro reaching its highest level against the dollar in over a year?

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Good question.

The euro reached its highest level against the dollar in over a year due to several factors, including a brighter eurozone economic outlook, increased business activity, and improved consumer confidence. Additionally, the broader retreat of the dollar occurred as investors believed that the US Federal Reserve was nearing the end of its monetary tightening. Other factors included lower energy prices, better economic data from China, and a more hawkish European Central Bank (ECB) compared to the Federal Reserve.

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