On Tuesday morning the euro shot up to its former 2015 value of more than 1,20 dollars. This is the third day in a row that the euro has been gaining in value at a fast rate.
Given the current rate of increase, the euro is expected to fly higher still. This is mainly due to the European Central Bank (ECB), that is responsible for the interest rate, and the expectation that they will start to phase out the money printing programme, which they put in place to repair the damages incurred during the late 2000s crisis.
It is possible that the ECB will announce changes to their monetary policy next week during the ECB Governing Council meeting.
According to John Hardy of Saxo Bank, the barrier directly above the 1,2 dollar value was broken, causing the euro to shoot up.
Whilst this means that you can get more bang for your buck, as it were, many central bankers are worried that the euro is becoming too strong, which may have implications for the Eurozone.
The euro has been climbing steadily, but how do other currencies measure up to it? The table below compares exchange rates from August 29, 2016 to August 29, 2017, and, as you can see, the euro appears to have increased in all instances since last year.
| Currency name | 2016 Units per EUR | 2017 Units per EUR |
|---|---|---|
| US Dollar | 1.1179623675 | 1.2044397007 |
| British Pound | 0.8542186265 | 0.9298773813 |
| Indian Rupee | 75.0713167293 | 77.0976110776 |
| Australian Dollar | 1.4761762134 | 1.5097522680 |
| Canadian Dollar | 1.4558074146 | 1.5023191824 |
| Swiss Franc | 1.0936043367 | 1.1384847228 |
| Japanese Yen | 114.1850544671 | 130.7570228048 |
| Hong Kong Dollar | 8.6705481319 | 9.4241496725 |