|
Euro Trades Near One-Week
High Against Dollar on Rate Advantage
Kim-Mai Cutler and Stanley White
Bloomberg
Tuesday, April 8, 2008
The euro traded close to a one-week high against the dollar on
speculation the European Central Bank will signal plans to keep
interest rates on hold as the Federal Reserve reduces borrowing
costs.
The 15-nation currency also rose to near a three-month high against
the yen after ECB council member Axel Weber said in Berlin yesterday
policy makers remain focused on ensuring price stability. The
British pound fell against every major currency after a report
showed a slump in house prices. The ECB and Bank of England announce
interest-rate decisions in two days' time.
``Because Weber was hawkish, the market has scaled down the probability
of a more neutral ECB,'' said Henrik Gullberg, a currency strategist
at Calyon, the investment-banking arm of Credit Agricole SA. ``They
definitely won't be dovish and that has weighed on chances of
seeing a rate cut at some point.'' The euro may rise to $1.60
by the end of the quarter, Gullberg said.
(Article continues below)
The euro climbed to $1.5798, the highest since March 31, before
trading at $1.5757 at 10:29 a.m. in London from $1.5711 late yesterday
in New York. It gained to 161.73 yen, the highest since Jan. 11,
before trading at 160.73 yen, from 160.88 yen. The dollar was
at 102.01 yen, from 102.40 yen.
The U.S. currency declined to 1.0083 Swiss francs, from 1.0131
yesterday, after former Fed Chairman Alan Greenspan told a conference
in Tokyo via satellite that the extent of losses stemming from
a collapse in the subprime-mortgage market won't be known for
months. Data today will show U.S. pending home sales fell 1 percent
in February after no change the previous month, according to a
Bloomberg survey.
Pound Declines
The pound fell to within half a euro cent of a record low against
the common European currency on speculation the Bank of England
will lower interest rates on April 10 as U.K. economic growth
slows. British home prices tumbled 2.5 percent last month, the
biggest drop since 1992, HBOS Plc said today. The pound traded
as low as 79.78 pence per euro, the weakest since March 31. It
was at $1.9767 from $1.9883.
Full
article here.
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
