The euro rose to its highest level against the dollar in more than four years on Tuesday, as a broad retreat in the American currency outweighed expectations that the European Central Bank will cut interest rates again before the end of the year.
The single currency gained 0.6 percent to $1.217, its strongest since the autumn of 2021, and is now up about 9 percent over 12 months. The dollar fell against most major currencies after weaker-than-expected American labor data reinforced bets on further easing by the Federal Reserve. The Swiss franc also strengthened, reaching a record 0.91 per euro and prompting fresh speculation that the Swiss National Bank will intervene.
“The euro is not rallying on its own merits. It is rallying because the dollar is falling and it is the largest alternative,” said Ines Baumgartner, a currency strategist at a Vienna bank. “For the E.C.B. that is uncomfortable. A strong euro does the work of a rate cut on inflation, and they are already below target.”
European stocks were steady, with the Stoxx 600 closing up 0.2 percent at 615.4. Exporters lagged, with automakers and luxury goods makers down about 1 percent on the currency move, while banks and insurers gained. The DAX rose 0.3 percent and the CAC 40 was flat. The FTSE 100 fell 0.3 percent as sterling strengthened.
German government bonds recovered some of Monday’s losses after a 30-year syndicated issue drew orders of more than 60 billion euros for a 7 billion euro sale. The 10-year Bund yield fell four basis points to 2.64 percent. French and Italian spreads were little changed.
Brent crude was steady at $59.60 a barrel. Gold rose 0.8 percent to $4,650 an ounce, helped by the weaker dollar, and silver gained more than 2 percent.
Attention now turns to Wednesday’s release of euro zone industrial production data for August and to a speech by a senior E.C.B. official in Frankfurt, which markets will scan for any hint of the bank’s intentions at its Oct. 29 meeting.
A version of this article appears in print on Oct. 12, 2026, Section B, Page 12 of the European edition with the headline: Euro Climbs to Four-Year High as Dollar Weakens; European Stocks Steady.
