Virgil
04-22-2008, 03:02 PM
At 6PM Bloomberg has the Euro at $1.6002. Today's article on the dollar-Euro relationship is at http://www.bloomberg.com/apps/news?pid=20601087&sid=aPqmFdi6t78s&refer=home
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Euro Trades Within Cent of Record Versus Dollar on ECB Outlook
April 23 (Bloomberg) -- The euro traded within a cent of the record against the dollar after European Central Bank officials said they'll increase interest rates from a six-year high if inflation doesn't slow.
The 15-nation currency surpassed $1.60 yesterday as oil surged above $119 a barrel and Federal Reserve Bank of Dallas President Richard Fisher said inflation is starting to grip U.S. consumers. South Africa's rand appreciated against all of the major currencies on bets rising consumer prices will force the central bank to increase its target lending rate.
``There are a lot of structural reasons for the euro not to weaken for some time,'' said Andrew Busch, a global currency strategist in Chicago at BMO Capital Markets, a unit of Bank of Montreal. ``They are dying to raise interest rates.''
The euro traded at $1.5996 at 6:11 a.m. in Tokyo, after increasing 0.5 percent yesterday, when it touched $1.6019, the highest since Europe's currency debuted in 1999. The euro traded at 164.76 yen, following a 0.3 percent advance. The dollar traded at 102.99 yen, after a 0.2 percent drop.
The 15-nation currency strengthened against the dollar yesterday as ECB governing council member Christian Noyer said policy makers will act to restrain consumer prices if inflation doesn't slow.
``Our big problem is to make sure that inflation falls back below 2 percent next year,'' the Bank of France governor said in an interview on RTL radio. ``We'll do what it takes for that,'' he said, adding, ``If needed, we'll move rates.''
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Euro Trades Within Cent of Record Versus Dollar on ECB Outlook
April 23 (Bloomberg) -- The euro traded within a cent of the record against the dollar after European Central Bank officials said they'll increase interest rates from a six-year high if inflation doesn't slow.
The 15-nation currency surpassed $1.60 yesterday as oil surged above $119 a barrel and Federal Reserve Bank of Dallas President Richard Fisher said inflation is starting to grip U.S. consumers. South Africa's rand appreciated against all of the major currencies on bets rising consumer prices will force the central bank to increase its target lending rate.
``There are a lot of structural reasons for the euro not to weaken for some time,'' said Andrew Busch, a global currency strategist in Chicago at BMO Capital Markets, a unit of Bank of Montreal. ``They are dying to raise interest rates.''
The euro traded at $1.5996 at 6:11 a.m. in Tokyo, after increasing 0.5 percent yesterday, when it touched $1.6019, the highest since Europe's currency debuted in 1999. The euro traded at 164.76 yen, following a 0.3 percent advance. The dollar traded at 102.99 yen, after a 0.2 percent drop.
The 15-nation currency strengthened against the dollar yesterday as ECB governing council member Christian Noyer said policy makers will act to restrain consumer prices if inflation doesn't slow.
``Our big problem is to make sure that inflation falls back below 2 percent next year,'' the Bank of France governor said in an interview on RTL radio. ``We'll do what it takes for that,'' he said, adding, ``If needed, we'll move rates.''
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