Euro falls against dollar as bettors anticipate US rate hike
The euro fell against the dollar in early trading on Monday as markets wagered that the US Federal Reserve may raise interest rates again this year.
By Agencies |
FRANKFURT: The euro fell against the dollar in early trading on Monday as markets wagered that the US Federal Reserve may raise interest rates again this year.
The euro fell to US$1.5524 from the US$1.5557 it bought in New York trading on late Friday.
The British pound bought US$1.9717, down from the US$1.9806 late Friday, while the dollar bought 105.49 Japanese yen, up slightly from the 105.04 yen it bought previously.
US economic data released on Friday showed that the world's biggest economy remains in a tight spot. But commodity prices have remained high worldwide and US long-term interest rates are on an upward trend, helping the dollar to rally, traders said.
Meanwhile, ``The ECB is currently caught between a rock and a hard place, facing elevated price pressures but mounting evidence that the Eurozone economy is increasingly faltering following resilient GDP growth ... in the first quarter of the year,'' said Howard Archer, an economist with Global Insight in London.
The European Central Bank meets later this week to decide on interest rates, and analysts are already predicting the bank will make another cut, but not before next year.
The euro fell to US$1.5524 from the US$1.5557 it bought in New York trading on late Friday.
The British pound bought US$1.9717, down from the US$1.9806 late Friday, while the dollar bought 105.49 Japanese yen, up slightly from the 105.04 yen it bought previously.
US economic data released on Friday showed that the world's biggest economy remains in a tight spot. But commodity prices have remained high worldwide and US long-term interest rates are on an upward trend, helping the dollar to rally, traders said.
Meanwhile, ``The ECB is currently caught between a rock and a hard place, facing elevated price pressures but mounting evidence that the Eurozone economy is increasingly faltering following resilient GDP growth ... in the first quarter of the year,'' said Howard Archer, an economist with Global Insight in London.
The European Central Bank meets later this week to decide on interest rates, and analysts are already predicting the bank will make another cut, but not before next year.
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