Friday, March 23, 2018

The euro rose to a two-week on Thursday The euro rose to a two-week on Thursday – The euro pared some of its gains against the dollar after hitting a nearly two-week high on Thursday following European Central Bank president Mario Draghi’s comments that policymakers would decide on tapering stimulus in October.

Mr Draghi, however, expressed concerns over the recent rally in the euro, saying that the currency’s strength “represents a source of uncertainty which requires monitoring with regard to its implications for the medium term outlook for price stability”. Stronger currencies usually lead to an increase in imports, which tends to weigh on the pace of inflation.

Draghi’s comments came after the ECB kept interest rates at record lows and confirmed that asset purchases would continue at least until December.

EUR/USD jumped 0.76% to $1.2008 while EUR/GBP gained 0.47% to £0.9180.

The sharp rise in euro added pressure on the dollar which fell to its lowest since January 2015 against its rivals amid initial jobless claims data that undershot expectations.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.56% to 91.69.

Initial jobless claims in the period running from Aug. 27 to Sept. 2 surged by 62,000 to 298,000, reaching the highest level since spring 2015, the Labor Department said Thursday.

GBP/USD rose 0.20% to $1.3069 while USD/CAD fell 0.65% to C$1.2145, as the Bank of Canada’s unexpected decision to hike rates on Wednesday continued to support a move higher in the loonie.

USD/JPY fell to Y108.51, down 0.66%.

sponsoredArticle = ‘div-gpt-ad-1466339494851-0’;

Banner Content