Euro Rises to 2-Week High as Draghi Points to Improving Economy
Bloomberg - Jun 03, 2015
The euro rose to a two-week high after European Central Bank President Mario Draghi pointed to signs of improvement in the region’s economy.
The 19-nation currency strengthened against most major peers as Draghi said inflation would start accelerating later this year. While he was committed to seeing through the central bank’s quantitative-easing program, the ECB president said there was no need to expand its bond-purchase program. Germany’s 10-year bond yield increased to the highest this year, adding to the allure of euro-denominated assets.
“Higher yields make it more attractive for investors to hold euros,†said Chris Gaffney, president at EverBank World Markets in St. Louis. Draghi’s comments boosted the currency by indicating that “European quantitative easing is working and Europe is recovering.â€
Gaffney said he expects the euro to fall in the longer term and sees the rally as a selling opportunity.
The euro advanced 0.9 percent to $1.1251 at 2:53 p.m. in New York, touching the highest since May 19. It climbed 1.1 percent to 139.93 yen, reaching the strongest since Jan. 13. The dollar added 0.2 percent to 124.37 yen.
