© Reuters. Euro hits fresh 2-1/2 year highs after Draghi© Reuters. Euro hits fresh 2-1/2 year highs after Draghi

Investing.com – The euro touched fresh two-and-a-half year highs against the dollar on Monday after the president of the European Central Bank held off talking about the recent strength of the currency and markets fretted over the economic impact of Tropical Storm Harvey.

hit 1.1960, the strongest level since January 2015 and was at 1.1931 by 03:48 AM ET (07:48 GMT).

The euro rallied on Friday after ECB President Mario Draghi didn’t address the recent strength of the single currency in a speech at the Jackson Hole economic symposium.

Draghi also avoided giving new clues as to when the ECB might wind down its stimulus programs but acknowledged that the euro zone’s economic recovery is gaining ground.

Hopes that the ECB will soon announce plans to taper its bond-buying stimulus program have driven the euro up around 13% against the dollar so far this year.

A speech by Federal Reserve Chair Janet Yellen at the same conference made no reference to monetary policy, disappointing some investors who had hoped she would sound a hawkish tone.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 92.41 after falling as low as 92.30 earlier, the weakest since May 2016.

The dollar was also under pressure amid concerns over the impact of Tropical Storm Harvey on the U.S. economy after catastrophic flooding inundated Houston on Sunday.

The dollar was weaker against the yen, with sliding 0.19% to 109.15, but remained well above the four-month low of 108.605 touched on Aug. 18.

The traditional safe haven Swiss franc was at one-month highs against the dollar, with at 0.9545.

Sterling was little changed against the dollar, with at 1.2886, but remained close to an eight-year trough against the euro, with last at 0.9256.

The euro has risen more than 8% against sterling so far this year, reflecting the diverging economic outlook for the euro zone and the UK and its implications for monetary policy.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.