On Wednesday, the euro stood strong. It is due to reposing in the sheen of s Franco-German proposal for a common fund that would help Europe get closer to fiscal union.
The dollar also traded a five-week up against the yen but it was clinched by reviving suspicion on COVID-19 vaccine progress.
The euro stood flat at $1.0924, having hit a two-week peak of $1.09755 in European trade.
The common currency also earned 1.0615 franc, after rising almost 1.0% so far in the week against the safe haven currency while against the yen, it stood near five-week highs of 118.20 yen.
“The Franco-German agreement is big news. This has made it difficult for speculators to close their short positions on the currency,” said Kyosuke Suzuki, director of forex at Societe Generale.
On Monday, Germany and France proposed A Recovery fund of 500 billion euro ($543 billion) in order to extend allowances to regions and sectors hit hardest due to COVID-19 pandemic. The Recovery fund will also allow borrowing by the European Commission on behalf of the entire EU.
Also helping the common currency was a survey showing German investor sentiment improved much more than expected in May as concerns eased over the impact of the coronavirus pandemic on Europe’s largest economy.
The US dollar tacked on 0.2% against the yen to 107.94 yen, near a five-week high of 108.085 hit in US trade on Tuesday.