The euro’s best first quarter on record has lifted exchange traded funds (ETFs) pegged to the currency’s fluctuations against the dollar as concerns over the region’s sovereign debt have receded somewhat.

In the three months ended March, the euro appreciated the most since the fourth quarter of 2008 and enjoyed its best first-quarter showing since the currency’s inception in 1999, Bloomberg reported Monday.

CurrencyShares Euro Trust (NYSEArca: FXE) is threatening to break out over $142 a share after finishing the first quarter with a gain of more than 6%. The euro ETF closed in the green Friday in a wild day of trading that started with early losses. Dovish comments from the Fed’s William Dudley pushed down the dollar and boosted the euro ETF close to a 52-week high. [Euro ETFs Jump After Dudley Speech.]

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

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