The euro has hit $1.20 for the first time since January 2015 as the prospect of a US interest rate rise recedes.The economic damage caused by Hurricane Harvey has led analysts to assume the US central bank will not want to risk curbing economic growth.A rise in interest rates tends to draw investors to a currency, taking advantage of the higher returns.Meanwhile, the euro has itself been gaining against a range of currencies as the eurozone’s economy improves.Against the dollar, it has risen by almost 15% so far this year.The euro has strengthened in recent months, as markets predicted the European Central Bank could start to cut back the money-printing programme it has been running to repair the ravages of the eurozone crisis and credit crunch of the late 2000s.The pound is at its weakest for almost a year. It buys 1.07 euros in the wholesale currency markets, making a euro worth a much as 92.8p. Sterling buys $1.28 currently.Tourist rates tend to be below those of the markets, sometimes by quite a bit.
Source: BBC News