Mar 16
Euro Strengthens Related Speculation ECB's monetary tightening
Tuesday, 05 July 2011 06:21

The euro rose 0.3% related to three weeks against the dollar on speculation European Central Bank (ECB) will continue to lead the U.S. counterpart to monetary tightening.

The euro was 0.2% of the highest four-week high against the yen related to the prospect that the ECB will raise interest rates on 7. According to 54 economists surveyed by Bloomberg, ECB on July 7, will increase the benchmark interest rate to 1.5% from 1.25%.

The euro traded at around $ 1.4537 at 9:03 am in Tokyo from $ 1.4539 in New York yesterday, when it reached $ 1.4578 yesterday, its highest level since June 9. The currency was at 117.53 yen from 117.47 range. Touched 117.74 yen yesterday, the strongest since June 8. Dollar up 80.85 yen from 80.80. Meanwhile, the U.S. financial markets closed on Monday related to the Independence Day holiday.

U.S. data this week expected to show a rise in employer's salary at a pace that failed to reduce unemployment, increase bets that the Federal Reserve (RED) will keep interest rates near zero. New Zealand Dollar (NZD) rose to a record after a report showed business confidence in the country is recovering in the second quarter.