Dollar recovers against euro as traders still eye 2015 rate hike
Reuters - Mar 24, 2015
The U.S. dollar rebounded against the euro on Tuesday on persistent bullish sentiment toward the greenback tied to the divergence of monetary policy between the United States and Europe, but the impact of last week's Federal Reserve statement limited its gains.
The dollar recovered against the euro after two straight sessions of losses on the view that the Fed will still hike interest rates this year, while the European Central Bank continues with its bond-buying stimulus program.
Early in Tuesday's session, the euro rose above $1.10 for the first time since March 18, when the Fed released its latest policy statement.
"The hangover from the Fed meeting certainly seems to be ongoing," said Dean Popplewell, chief currency strategist at Oanda in Toronto.
Analysts said the dollar will continue to find support as it hits key lows against other currencies.
"Obviously a cold towel has been put on the (long dollar) trade, but the trend is still there" for dollar strength, said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York.
