The euro’s surge is vindicating the handful of strategists who argued against calls for the single currency to fall to parity with the dollar.

A pullback in the dollar accelerated Wednesday, as two of its biggest counterparts, the euro and the Japanese yen, surged. The WSJ Dollar Index recently stood 0.65% lower at 99.81. That put the index on course for its lowest close since Nov.

The biggest three-day rally in the euro in over two years has sent analysts scrambling to rewrite their forecasts for the currency, as a surge in European spending and signs of a weakening U.S. economy dampens chatter about a fall to $1.

The chief of the European Union’s executive is proposing an 800 billion-euro ($841 billion) plan to beef up EU defenses.

Germany unveiled a plan Wednesday to exempt military spending from its strict fiscal rules and create a €500B off-budget fund to finance infrastructure spending, laying the ground for a sharp increase in the country’s defense budget.