LONDON—The euro hit a nine-month peak against the dollar on Monday as comments on European interest rates signaling additional jumbo rate rises contrasted with market pricing for a less aggressive Federal Reserve.
The euro reached as high as $1.0927, breaking the recent peak of $1.08875, to trade at its highest level since April last year.
It was aided by European Central Bank (ECB) governing council member Klaas Knot, who said interest rates would rise by 50 basis points in both February and March and continue climbing in the months after.
A Reuters survey of analysts also favored a hike of 50 basis points in March and an eventual top of 3.25 percent from the current rate of 2 percent….