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Buoyed by dour US economic reports, Bernanke hints of rate cuts, euro crosses US$1.51

Buoyed by dour US economic reports, Bernanke hints of rate cuts, euro crosses US$1.51

The euro is climbing to record highs again after the chairman of the U.S. Federal Reserve Bank told Congress that the U.S. will encounter more sluggish economic activity in the coming weeks and months.
Ben Bernanke's remarks in Washington Wednesday have convinced currency traders that more interest rates are likely to come sooner than later and that has pushed the euro to a high of US$1.5105, its loftiest perch since the 15-nation currency was introduced in 1999.
Lower interest rates can jump-start a nation's economy, but may weigh on its currency as traders transfer funds to countries where they can earn higher returns.


Updated : 2020-12-02 12:30 GMT+08:00