Business confidence in Germany rose again in April, having topped a 15-year high the previous month, a new survey showed this morning.
The unexpected rise increased speculation that the European Central Bank would raise interest rates again, which in turn sent the euro to a seven-month high of $1.2417.
The widely watched business climate index, calculated each month by the Munich-based economic research institute Ifo, rose to 105.9 points in April from 105.4 points in March.
'After already rising sharply for fourth months in a row, the Ifo business climate index rose slightly again in April. This points to an ongoing robust economy,' Ifo president Hans-Werner Sinn said.
For its monthly survey, Ifo polls around 7,000 companies about their assessment of current business and their expectations for the next six months.
A breakdown of the data showed that the current sentiment sub-index rose to 106.4 points in April from 105.1 points in March. The expectations sub-index slipped slightly, easing to 105.5 points from 105.7 points.
