Euro declines on Trichet comments

Euro declines on Trichet comments

Story link: Euro declines on Trichet comments

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The yen saw gains on Monday in light currencies trade due to the closure of the London market for a public holiday, while the euro declined after comments from the president of the European Central Bank that were interpreted as calling into question an expected Eurozone interest rate hike in September.

Jean-Claude Trichet said that the Bank is not “pre-committed� to sending rates higher when it meets on September 6.

Just after Mr. Trichet’s remarks became public knowledge, the euro dropped by 0.33 percent to $1.3644 against the US dollar and by midday in New York the dollar remained 0.2 percent higher in relation to the shared currency to $1.3648.

Meanwhile, the yen had added 0.5 percent to ¥158.40 by midday in New York and was up 0.4 percent versus the greenback at ¥116.03.

Sterling was a bit higher against the US dollar to $2.0149.