The dollar jumped on Thursday to fresh highs against other major currencies as investors betting European and American monetary policies are parting ways knocked the euro to an almost two-year low against the US currency. The euro fell as far as $1.26955 on trading platform EBS, its lowest since November 2012. This helped push the dollar index, which measures the greenback against a basket of major currencies, to a four-year high of 85.485.
Selling in the euro, which was last off 0.5 percent against the dollar at $1.272, quickened after the shared currency sank past $1.2750, a support level which had stopped declines four times over the past 18 months, according to Boris Schlossberg, managing director at BK Asset Management in New York. The dollar was also up 0.2 percent against the Japanese yen at 109.20 yen.