Euro Hits 2025 High as Banks Ditch Parity Calls on Defense Push

The euro rose to its strongest this year versus the dollar as the wall of cash headed for Europe’s defense industry prompts analysts to drop forecasts for parity between the two currencies.

Goldman Sachs Group Inc., MUFG and TD have abandoned predictions that one euro will buy one dollar this year. The European currency has surged about 4% from a two-year low just one month ago, and Deutsche Bank AG says the likelihood of a fall below parity has reduced.