Pound, US dodllar at new lows versus euro

Story link: Pound, US dodllar at new lows versus euro

Both the US dollar and the pound touched all-time lows versus the euro on Wednesday on reports that inflation in the Eurozone was up last month.

At 3.6 percent, Eurozone inflation was at its highest in nearly 16 years, decreasing the likelihood that the European Central Bank will cut interest rates and raising the possibility that rates could be increased.

The greenback touched a record low at $1.5969 to the euro and was trading at $1.5953 to the shared currency at around 11:30 a.m. in New York, while the pound hit a record low at 80.76p to the euro at the same time.

The dollar was hurt by new data showing that housing starts were down 11.9 percent in March in the US from February’s levels, the lowest since March 1991.

The US currency was also lower versus the yen, to ¥101.5250 in late morning trade in New York, while the euro gained on the yen to ¥161.9627 and the pound traded at ¥200.5424.

The Norwegian krone gained on the euro as oil prices hovered around record highs, trading at kr7.9059 to the euro at late morning in New York.