Euro strengthens on remarks from ECB official

Story link: Euro strengthens on remarks from ECB official

The euro saw gains versus the US dollar and the yen on Thursday after a member of the European Central Bank’s council made comments discounting speculation that the ECB might need to cut interest rates, calling the idea of a rate cut “wishful thinking”.

The euro was lower Wednesday despite remarks from the ECB’s president implying that rates would not be cut.

Gains for the euro came on a report that business confidence rose in Germany when it had been expected to decline, while the dollar was hurt by a drop in existing home sales in December and the yen weakened after some investors began to look for risky investments once again.

By just past 1 p.m. in New York, it cost $1.4730 to buy a euro and the shared currency was trading at ¥157.1396 to the euro.

The US dollar also declined versus the pound and in early afternoon trade in New York it cost $1.9705 to buy a pound, but the greenback’s biggest declines came against the Brazilian real and the Norwegian krone as it took R$1.7860 or kr5.4390 to buy a dollar.

The pound was stronger versus the dollar, the yen and the euro.

The greenback traded at $1.9705 to the pound while the yen was at ¥210.2181 to the pound and the UK currency traded at 74.75p to the euro.