Most expensive euro on record has traders brace for declines

FILE PHOTO: U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

LONDON: By some measure, the euro is at its most expensive level on record, potentially setting itself up for a fall if it starts to undermine the eurozone economy and forces the European Central Bank (ECB) to turn dovish.

The common currency’s so-called nominal effective exchange rate, which compares it to the currencies of the eurozone’s trade partners, has never been stronger.