Euro hits week highs on US stimulus prospects

Euro rallied on Thursday to week highs against dollar as investors flock to high-risk currencies on hopes for resolving the US impasse on financial stimulus. 

EUR/USD rose 0.3% to 1.1757, the highest in a week, after closing down 0.2% yesterday, the first loss in three days. 

The common currency fell 1.8% in September, the first monthly loss in five as Covid cases surge back in Europe and the US. 

The dollar index fell 0.2% on Thursday, the fourth decline in a row, marking week lows at 93.62. 

The decline comes as sentiment improves in the markets and haven demand declines on the greenback.

US President Donald Trump suggested a new stimulus package worth $1.5 trillion amid talks with Democrats to bypass the current impasse.