The euro rose to a nine-month high against the dollar during Monday's trading; It reached $1.0927, surpassing a recent peak of $1.08875.
According to Arabiya.net, this rise came in light of the statements of European Central Bank Governing Council member Clas Knut, who said that interest rates will rise by 50 basis points in each of February and March, and will continue to rise in the following months.
Jane Foley, head of foreign exchange strategy at Rabobank, said that the euro is also receiving support from easing inflation fears due to falling natural gas prices.
And she continued: the growing confidence in the future outlook of the economy, or at least the removal of a large part of pessimism from the reasons for supporting the euro.. Moreover, it seems that the European Central Bank will continue to raise interest rates in fairly large proportions.
The British pound rose to as much as $1.24475, the highest level in seven months.
The dollar index fell 0.2% against a basket of competing currencies, including the euro and the pound sterling, at 101.73, just a little away from an eight-month low of 101.510.
However, the dollar managed to hold its ground against the yen, after the Bank of Japan defied market pressure to reverse its ultra-loose bond policy. And the dollar increased 0.2%, recording 129.875 yen, after severe fluctuations last week between 127.22 and 131.58.
