The Euro hit a two-year high versus the dollar today and fresh all-time peaks against the yen and Swiss franc.
The euro rose to a two-year peak of $1.3477, within two cents of record highs hit in late 2004.
The currency's move came as investors anticipated signals from the European Central Bank (ECB) later today about higher interest rates.
The ECB is widely seen leaving rates unchanged at 3.75 per cent when it announces the result of this week's policy meeting today.
But president Jean-Claude Trichet is expected to confirm that at least one more rate rise is on the horizon at a news conference, and some investors are betting that he could pave the way for a move as soon as May.
In the euro zone a run of stronger-than-expected data has boosted expectations of another rate rise from the ECB by June.
But some analysts say that the recent appreciation of the Euro means the ECB may want to delay its next tightening for fear of choking growth.