The euro has surged to a four-month high against the US dollar, reaching $1.0845 following the European Central Bank's (ECB) policy decision, according to FactSet data. Earlier in the week, the euro hit $1.07405, extending its gains to be up nearly 1% at $1.0729. The currency is poised for its best weekly performance in 16 years since 2009, fueled by a weakening US dollar ahead of key US jobs data. The euro's strength is also supported by hopes of stimulus from the ECB, as well as positive economic indicators from the Eurozone, where the economy grew 0.2% at the end of last year, twice the initially estimated pace. The US dollar's decline is attributed to tariff-driven fears and a general softening of the currency, with the dollar index dipping to 103.60. This has led to the euro extending its gains post-US payrolls data, rising 0.9% to $1.0886.