Market news
31.01.2011, 17:29

American focus: the dollar is under pressure

The euro climbed against the dollar, extending a monthly gain, as a report showed European inflation accelerated to a two-year high, indicating the European Central Bank may be moving closer to raising interest rates.

The dollar traded near a four-week low versus the yen as a measure of U.S. inflation watched by the Federal Reserve rose at the slowest pace on record. Norway’s krone and Mexico’s peso gained versus the dollar as crude oil increased on escalating protests in Egypt.

“The Fed is more focused on core inflation, and the ECB is more focused on headline inflation,” said Aroop Chatterjee, a currency strategist at Barclays Plc in New York. “That differentiates the potential monetary policy responses between the two. The question is on the European side of things. Does the ECB respond to the elevated inflation numbers?”

The 17-nation currency has gained 2.2 percent against the dollar this month as investors bet the ECB will raise borrowing costs before the Federal Reserve.

The Euribor rate at which European banks say they see each other lending for three months advanced to 1.074 percent, the highest level since July 1, 2009, according to the European Banking Federation.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location