Foreign exchange markets greeted the introduction of euro notes and coins with solid, one-per cent gains against the dollar, yen and pound today as Europeans got to grips with their new, common currency.
Eurozone purchasing managers data for December also showed a slight upturn on the previous month, lending the euro support, though at 44.1 the data still showed its ninth month of contraction.
Although the single currency was formally introduced in the 12-nation euro zone in physical form on New Year's day, major trading centres and most shops and high street banks were closed for the holiday.
As a result, today was the day that everybody had been waiting for with markets eagerly watching for glitches. Analysts said early indications of a smooth roll out for notes and coins had been behind the big move.
"There was a fairly wide market expectation that there would be some negative headlines linked to the changeover," said Mr Michael Klawitter, senior currency strategist at WestLB in London.
"So far, everything is working relatively smoothly and so we are seeing a relief rally in the euro."
The euro hit highs around $0.9000, up 1.25 per cent on the day, with the single currency also up more than one per cent against the yen touching its highest levels since September 1999 above 118.30.
A smooth introduction of the single currency is seen as increasing the chances of non-eurozone countries holding referenda on joining.
Pro-euro officials in Britain hope that a smooth introduction of notes and coins will soften public hostility to the idea of scrapping the pound.
Economists say that the pound would need to depreciate before it can join the euro. Any news seen making euro entry more likely, therefore, tends to push the British currency lower.