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Euro climbs further on dollar to US$1.5674

Euro climbs further on dollar to US$1.5674

The euro climbed further against the dollar Friday after the European Central Bank hinted a day earlier that it could raise interest rates as soon as its next monthly meeting.
The 15-nation euro bought US$1.5674 in European afternoon trading, up from the US$1.5593 a euro bought in New York trading late Thursday.
A mini dollar rally against the euro was quickly reversed Thursday after ECB President Jean-Claude Trichet suggested the bank might raise interest rates at its next meeting citing inflationary concerns. At Thursday's meeting, the bank left its key rate unchanged at 4 percent.
Higher rates can fight inflation and also support a currency, while lower interest rates can force down a currency as investors seek higher-yielding assets.
The dollar has slumped throughout the year as the U.S. Federal Reserve cut its federal fund rate in an effort to spark the U.S. economy, to 2 percent, from 4.75 percent since September.
In other currencies, the British pound bought US$1.9623, in late European trading, up from the US$1.9596 the night before in New York, while the dollar bought 105.71 Japanese yen, up from the 105.64 yen a dollar bought Thursday in New York.


Updated : 2021-07-25 15:38 GMT+08:00