The euro rose to a fresh two-year peak against the dollar on Thursday as concerns about the outlook for the US economy and monetary policy outweighed weaker euro zone data. The dollar remained under pressure due to lower US bond yields and expectations the Federal Reserve will maintain its bond-buying stimulus program well into next year.
In midday trading, the euro was up 0.2 percent at $1.3802, having hit $1.3824, its strongest since November 2011. The dollar fell broadly, hitting a near nine-month low against a basket of currencies of 79.081. It was last flat on the day at 79.233. The dollar was little changed against the yen to 97.43 yen but held above Wednesday's two-week low of 97.15 yen. The Australian dollar was down 0.3 percent at US $0.9591, paring gains after an earlier boost from data showing Chinese manufacturing hit a seven-month high in October.