German business sentiment helps euro

Story link: German business sentiment helps euro

The euro was stronger early Wednesday after the latest Ifo survey of German business sentiment was higher than had been predicted. It was at 108.6 in April after a reading of 107.7 in March. Analysts said that this new data made it almost certain that the European Central Bank will raise interest rates to 4 percent in June.

The shared currency was at $1.3655 in relation to the US dollar at mid-morning in London, just below its record high of $1.3670, reached in December 2004. The euro was also 0.1 percent higher to ¥161.74 versus the Japanese yen. By mid-afternoon in New York, the European currency had dropped back a bit against the greenback, to $1.3642, while it was at ¥161.92 against the yen.

The euro dropped 0.1 percent early to £0.6805 against sterling early in the day on strong UK economic growth in the first quarter; later in the day the euro was to £0.6813 in relation to the UK currency. Sterling was also higher versus the greenback, rising 0.2 percent.