Investing.com - The euro rose to session highs against the dollar on Thursday after data showing German business confidence improved this month, while comments by the European Central Bank playing down prospects for further monetary easing in the short term also underpinned demand.
The single currency was boosted after German research institute Ifo said its business climate index ticked up to 108.5 this month from August’s 108.4. It was the highest reading in four months and was ahead of forecasts of 108.0.
EUR/USD touched highs of 1.1223 up from around 1.1210 ahead of the report.
The euro remained broadly stronger after ECB President Mario Draghi downplayed the need for further monetary easing on Wednesday.
Draghi said the ECB needed more time before deciding on whether to expand monetary stimulus, but reiterated that it stood ready to ramp up its asset purchase program if necessary.
The ECB launched its €60 billion-a-month quantitative easing program in March to combat persistently low inflation in the euro area and it is set to run until at least September 2016.
The annual rate of inflation in the currency bloc was 0.1% in August, well below the ECB’s target of close to, but just under 2%.
The euro was slightly lower against the yen, with EUR/JPY dipping 0.09% to 134.38.
The euro index, which measures the single currency’s strength against a trade-weighted basket of currencies, was last at 89.38.
Investors were looking ahead to a speech by Federal Reserve Chair Janet Yellen later in the day for additional clarity on the bank’s decision last week to leave interest rates on hold.
The U.S. was also set to release reports on jobless claims, durable goods and new home sales.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 96.29.