German business sentiment helps euro

German business sentiment helps euro

Story link: German business sentiment helps euro

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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.