Euro near one-year peak as US economic risks weigh on dollar

The euro hovered near a one-year high versus the dollar on Thursday, as Europe’s resilient economy contrasted with banking contagion risks in the United States, the debt ceiling standoff and a potential recession.

The risk-sensitive Aussie struggled to stay above the key 66 cent mark, while leading cryptocurrency bitcoin found its footing around $29,400 following wild swings in the previous session.

The yen was in a holding pattern as the Bank of Japan began a two-day policy meeting, the first under new governor Kazuo Ueda.

Europe’s single currency ticked up 0.05% to $1.10415, edging back toward the overnight peak at $1.1096, the highest since April of last year.

The dollar index – which measures the greenback against six major peers, with the euro the most heavily weighted – was little changed at 101.41, following a 0.42% slide on Wednesday, when it touched a near two-week low of 101.00.

Germany again revised up growth forecasts on Wednesday, and a survey showed a continued pickup in consumer confidence.

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