7 September 2012 Last updated at 07:16 ET
It also hit a two-month peak against the Japanese yen and a one-month peak against the Swiss franc.
Yields on Spanish and Italian 10-year bonds fell further, easing implied borrowing costs for the debt-laden countries.
Spanish 10-year bond yields fell to 5.77%, below 6% for the first time since May, while yields on the equivalent Italian bonds fell to 5.19%.
'Driving confidence' On Thursday, ECB president Mario Draghi unveiled details of a bond-buying plan aimed at easing the eurozone's debt crisis.
Under the plan, the ECB would agree to buy a potentially unlimited amount of bonds of debt-stricken eurozone members on the condition that these countries made a formal request for bailout funds and stuck to the terms of any deal.
"You see the rally extending to longer [bond] maturities, whereas in previous times the rally was concentrated on the short end," he said.
George Saravelos, G10 FX strategist at Deutsche Bank, said: "Draghi has lowered the risk premium towards the euro."
However, Germany's Bundesbank remains opposed to the ECB's bond-buying plan
In a statement, Bundesbank president Jens Weidmann said the bond programme was, "tantamount to financing governments by printing banknotes".
Optimism
European stock markets also rose on Friday morning after their strong rally yesterday, as optimism grew about the prospects for the eurozone economy.
In Paris, the Cac40 index was up more than 1%, while Frankfurt's Dax index rose 0.65% in the first two hours of trading.
Markets were optimistic that US non-farm payroll figures, due later on Friday, would show a rise in employment.
Last Updated at 07 Sep 2012, 11:56 ET *Chart shows local time 
| €1 buys | change | % |
|---|---|---|
| 1.2789 | +
+0.02
| +
+1.25
|
The euro has strengthened to a two-month high against the US dollar, as the European Central Bank's bond-buying plans continued to please the markets.
The euro rose 0.3% to $1.2673 in early trading on Friday.It also hit a two-month peak against the Japanese yen and a one-month peak against the Swiss franc.
Yields on Spanish and Italian 10-year bonds fell further, easing implied borrowing costs for the debt-laden countries.
Spanish 10-year bond yields fell to 5.77%, below 6% for the first time since May, while yields on the equivalent Italian bonds fell to 5.19%.
'Driving confidence' On Thursday, ECB president Mario Draghi unveiled details of a bond-buying plan aimed at easing the eurozone's debt crisis.
Under the plan, the ECB would agree to buy a potentially unlimited amount of bonds of debt-stricken eurozone members on the condition that these countries made a formal request for bailout funds and stuck to the terms of any deal.
“Start Quote
End QuoteWhen the president of the Bundesbank openly disagrees with the president of the European Central Bank, you might think that something serious was happening. It is not the way central banks are meant to behave”
Mr Draghi said the scheme would provide a "fully effective backstop" and that the euro was "irreversible".
Alessandro Giansanti, a strategist at ING, said the plan was, "driving confidence through the market". "You see the rally extending to longer [bond] maturities, whereas in previous times the rally was concentrated on the short end," he said.
George Saravelos, G10 FX strategist at Deutsche Bank, said: "Draghi has lowered the risk premium towards the euro."
However, Germany's Bundesbank remains opposed to the ECB's bond-buying plan
In a statement, Bundesbank president Jens Weidmann said the bond programme was, "tantamount to financing governments by printing banknotes".
Optimism
European stock markets also rose on Friday morning after their strong rally yesterday, as optimism grew about the prospects for the eurozone economy.
In Paris, the Cac40 index was up more than 1%, while Frankfurt's Dax index rose 0.65% in the first two hours of trading.
Markets were optimistic that US non-farm payroll figures, due later on Friday, would show a rise in employment.
It's good to know that finally there money value is a lot better today then it was a long time ago. However it is no match to the U.S but maybe it will in the future. - Godfrey
ReplyDeleteSince their money is getting higher, wouldn't that mean that the US money should be going up too?
ReplyDelete-Courtney M.
Sounds like their economy should be doing better with the raise in their Euro. (alessia a)
ReplyDeleteIf the US money should go up higher too, would that make our economy better or worse than it is right now?
ReplyDelete-Ashley T
I am glad that their economy is doing better, it has seen better days. And Ashley, to answer your question, I know that if the value of the dollar went up that things would become slightly less expensive and prices would "decrease". I would like to say that it would make our economy better, but I'm not sure completely.
ReplyDeleteJordan S
Happy to see the Euro is finnaly doing well. Well maby now if Greece gets its act together we can get out of this global recession. Logan P.
ReplyDelete