The euro jumped above $ 1.21 for the first time in three years on Friday, amid growing expectations that the ECB will signify its willingness to end its massive monetary stimulus program.
The euro rose 0.8% to $ 1.2134, its strongest level since December 31, 2014.
The single European currency has been up more than 1.5% since Thursday, its strongest performance in two days since August.
The strength of the euro led the dollar index, which measures the performance of the greenback versus a basket of six major currencies, to fall 0.6% to a four-month low of 91.329. Against the yen, the dollar hit a six-week low of 111.00 yen.
The euro recovered after the release of the ECB's December meeting minutes, which revealed on Thursday that the institution could adjust its forward-looking indicators at the beginning of 2018 to reflect the strength of the euro-zone economy.
The strength of the European currency strengthened the announcement by Germany's conservatives led by Chancellor Angela Merkel and the Social Democrats of an agreement to strengthen the eurozone and reform it in cooperation with France to make it stronger in the face of crisis, according to the text of the agreement reached by the two parties to form a government in the country.
The rise in the European exchange rate comes at a time when Citigroup sees the US dollar heading for 5% of its value against the currencies of the developed countries, including the euro, and may lose less against the currencies of emerging countries.
According to a recent study by the University of California, Trump's isolationist policies and its continuing attack on many countries, the dollar may lose part of its global position as an international reserve currency and a major settlement currency in global finance and trade deals.
The study, published by three professors in a research paper, suggests that Donald Trump's policies may lose the dollar about $ 750 billion in world assets over the coming years, more than 5 percent of dollar assets abroad.
The study, published by Barry Eishengren, Prof. Arnold Mehall and Livia Chitto of the European Central Bank, argues that the strength of a currency and its global influence depend on two factors, one economic and the other security security.
