Euro strengthens in anticipation of ECB rate hike
In the light of the latest implementation of austerity measures by Greece and agreement by euro zone finance minister to write off a further portion of Greece’s debt, the ECB expects some slight increase in upside risk to inflation. Thus the next move in interest rates is expected to be upwards.
After the statement, the euro is trading at $1.3910 = a rise of 1.8 per cent since the announcement
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The euro leapt 1.8 per cent against the dollar on news that the ECB (European Central Bank) is likely to raise interest rates.
Eurozone finance ministers have agreed to take a more lenient stance on Greek debt repayment after concerns surrounding the country’s latest round of austerity measures. The ECB is expected to raise rates to combat increased inflationary risk.
After a weak start to the day, the euro is currently trading at $1.3910, up from $1.3794 at the previous close.