German business sentiment improved unexpectedly in December after slumping sharply in November, according to a survey.
The Ifo institute's index, based on a survey of business executives about their outlook on the current climate and for the next six months, rose to 96.2 from 94.1 in November, its highest level since April this year, and well above economists' forecasts of 93.8.
The euro hit a new all-time high against the US dollar last week of $1.3470, jumping sharply from about $1.20 in September.
The rapid rise has caused European leaders to worry that euro's strength could damage their largely export-driven recovery by making products more expensive overseas or cutting into the profits of manufacturers who seek to hold prices steady.
Benchmark crude oil futures are down about $11 per barrel from the record closing high of $55.17 in late October.