Traders are also buying euros because of worries that the economic recovery in the U.S. is slowing. More people filed unemployment claims last week, and retail sales barely grew in the last month of the year.
The euro rose to $1.2818 in midday trading Thursday from $1.2697 late Wednesday.
In other trading, the British pound has risen to $1.5325 from $1.5320. The dollar is down at 76.75 Japanese yen from 76.87 and down to 0.9444 Swiss franc from 0.9551.