The euro began the year on a firm note, leaping to 10-month highs against the yen and five-month highs against the dollar amid persistent concern of a sharp economic slowdown in the US and Japan.
Recent European data has reinforced the view euro zone growth remains relatively robust and well placed to withstand a period of slower global growth, analysts said.
Comments from Bank of France Governor Mr Jean-Claude Trichet also supported the euro. Speaking on radio Mr Trichet said he expected euro zone countries to see economic growth of around 3 per cent in 2001 without inflationary pressures.
The market shrugged off data showing the pace of manufacturing expansion in France and Italy slowed in December as expected.
Bullishness over the euro zone's growth prospects pushed the euro above $0.9450 - its highest since last July and above 108 yen. This is its strongest since late February 2000.
The euro's gains against the two major currencies also lifted it to six-month highs against sterling at above 63 pence.
Reuters