The euro surged more than 1 percent against a broadly weaker dollar on Tuesday, rising above $1.10 to reach its highest since Donald Trump was elected U.S. president in November.
The dollar fell after the release of lower-than-expected data on U.S. housing starts, adding to a list of U.S. economic reports that have missed predictions to the downside.
Data released earlier in the day showed the euro zone growing at 1.7 percent year-on-year in the first quarter, in line with expectations.
The election of Emmanuel Macron as president of France and growing expectations of further European integration as he seeks deeper ties with Germany have also helped bolster the euro, analysts said.
European reconciliation has come along with stronger data, improved prospects for a Greek bailout package and talk that the European Central Bank is looking to reduce its quantitative easing program, said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange.
"The euro has been behind the curve in terms of the dollar weakness story, and now its just playing catch-up," Borthwick added.