The euro rallied to a 13-month high Wednesday, as fears of a financial meltdown in Europe continue to abate, thanks in large part to the European Central Bank.
Last year, ECB president Mario Draghi pledged to do whatever it takes to preserve the currency.
More recently, the ECB said that European banks had repaid €137 billion worth of emergency loans, raising hopes the financial sector is on the mend.
“The last euro bear seems to have died on Friday,” analysts at Nomura proclaimed in a research note, saying the currency market is showing signs of “EURphoria.”
The euro is now firmly above $1.35, topping a key technical level that analysts say could pave the way to $1.40.
That’s a far cry from where it was at the height of Europe’s debt crisis last July, when it fetched about $1.20.