Monday, April 13, 2015

Euro Tumbles Toward $1.05 As Dollar Comeback Continues

Via Reuters:

The euro tumbled back towards $1.05 on Monday, hitting its weakest in four weeks as the dollar's resurgence continued on bets the U.S. Federal Reserve will raise interest rates from their historic lows in the coming months.

The U.S. dollar rose against the euro on Monday in a continuation of last week's bets that the U.S.

Federal Reserve will hike interest rates in the coming months, while the yen edged higher on uncertainty surrounding the Bank of Japan's easing policies.

With little U.S. economic data on tap, recent commentary from Fed officials and minutes from the central bank's March policy meeting suggesting a June rate hike was possible supported the dollar against the euro.

The dollar's strength against the euro was a "spillover" from last week's commentary from the Fed, said Alan Ruskin, global head of currency strategy at Deutsche Bank in New York.

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