The EUR topped $1.5030 for the first time since August 2008 on optimism that the global economic recovery is gathering momentum, increasing demand for riskier assets at the expense of the greenback.
The EUR was affected by the global stock market rally and the bearish Dollar. The U.S. stock market rally led investors to buy-back into the EUR, as they looked for returns on buying commodity-linked and higher-yielding currencies in Wednesday's trading.
The British pound also jumped, hitting a high of 1.6631 against the US dollar as investors grew more confident that the Bank of England's (BOE) rate-setting committee may halt, at least temporarily, a controversial program of buying bonds to boost the economy. The rise followed the release of Minutes from the BOE's October meeting that showed policymakers were in agreement on limiting the central bank's bond-buying program.
As the global economy stabilizes, currency traders have started to focus more on fundamentals such as economic growth and short-term interest rates. That shift, just getting underway, could take the shine off the soaring EUR in the coming months.