Euro gains on USD, pound

Story link: Euro gains on USD, pound

The euro strengthened versus the US dollar on Monday on the possibility that the European Central Bank will hold interest rates steady when it meets later in the week after the Bank’s president called the risk of inflation in the Eurozone significant.

The dollar’s decline, however, was moderated by new index readings from the Institute for Supply Management when its non-manufacturing index showed a reading of 52 in April, up from 49.6 in March, indicting that the US non-manufacturing sector returned to expansion in April.

In late-morning trade in New York, the euro was worth $1.5489, while it was also higher versus the yen at ¥162.8590.

The greenback, meanwhile, traded at ¥105.1450.

The pound weakened in relation to the euro and the US dollar on sentiment that the Bank of England will hold interest rates steady when the Bank’s Monetary Policy Committee meets next.

The British currency traded at 78.68p to the euro at just before 11:30 a.m. in New York, while a pound was worth $1.9685.

The Canadian dollar was up versus the US dollar on higher prices for oil and gold and on higher exports of commodities, with the loonie trading at C$1.0128 to the greenback.