Euro Hits 2025 High Versus Dollar on Europe Defense Spend Bets

The euro hit a fresh year-to-date high versus the greenback amid renewed bets that a ramp-up in European defense spending will provide a much-needed boost to the region’s economy.

The common currency rose 0.5% to $1.0546, its highest since Dec. 10, as the European Union said it will propose extending €150 billion ($158 billion) in loans to boost the continent’s defense spending. Efforts to increase defense capabilities on the continent has helped the euro to bounce nearly 4% from a two-year low hit just a month ago.