Euro gains on greenback, other currencies

Euro gains on greenback, other currencies

Story link: Euro gains on greenback, other currencies

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The euro saw gains in relation to the US dollar, the pound and the yen Wednesday as crude oil prices rose for the third session in a row and as comments from European Central Bank officials reduced sentiment that Eurozone interest rates will fall next year.

One official, Klaus Liebscher, warned in comments in Berlin that it is more necessary now than ever to keep an eye on inflation, while ECB official Axel Weber said in an interview that rate cut speculation is “premature� and that the Bank could have to raise rates next year.

In late morning trade in new York, it took $1.4712 to buy a euro while the shared currency gained versus the yen to ¥161.4588.

The greenback also strengthened versus the yen, to ¥109.7500.

The pound declined versus the euro on speculation that the continuing housing slump could force the Bank of England to cut interest rates soon.

The speculation came ahead of a report from the Nationwide Building Society, due Thursday, which is expected to show UK house prices down again, and after house builder Taylor Wimpey (LSE: TW) said that it lost £1.4 billion in the first half.

The pound traded at 80.19p to the euro not long before noon in New York, while at the same time it took $1.8345 to buy a pound.