The exchange rate at the time of writing has climbed to €1.19, up from €1.18 yesterday.
Sterling has enjoyed a somewhat unexpected boost from the results of the French presidential election.
En Marche! centrist Emmanuel Macron claimed a definitive victory over far right opponent Marine Le Pen on Sunday.
Despite forecasts, the vote caused a surge in sterling, which had dived in the other direction as recently as Friday.
Paresh Davdra, CEO and Co-Founder of RationalFX, said: “Emmanuel Macron has won the French Election, securing a victory over rival Marine Le Pen with 65.5 per cent of the vote.
“The euro initially reached a six-month high against the dollar as Mr Macron became the first president from outside the two traditional main parties in the modern republic’s history before falling back as investors begin to look towards the future.”
Despite the certainty of a Macron win, the nation’s future is still marred by economic hurdles.
Mr Davdra said: “The markets recognise that Macron faces immense domestic challenges including ending years of high unemployment and sluggish growth, which will impact on the long term prospects for the euro if he is unable to tackle these challenges effectively.
“Investors will be watching closely to see how the Macron presidency unfolds, and if his administration will help to restore the euro to strength.”
Even with Macron’s less extreme views compared to rival Le Pen, the possibility of a Frexit can’t be ruled out, according to experts.
Naeem Aslam, chief market analyst at ThinkMarkets, said: “The unemployment rate in the country remain stuck at 10 percent, nearly more than the unemployment rate in the UK and Germany, therefore the country needs critical reform.
“It was a bitter campaign and the Frexit threat can surface again even before Mr Macron’s term expires if he fails to establish a new strong relationship with Brussels. The opposition party’s leader, Le Pen will gather momentum and could come back much stronger in the coming five years.
