Euro Rises Versus Dollar After Biggest Two-Day Drop Since 2005
Euro Rises Versus Dollar After Biggest Two-Day Drop Since 2005
by takeshitsai on Wed Jun 11, 2008 10:30 pm
The euro strengthened against the dollar as traders speculated its biggest two-day decline since 2005 was too much to be sustained.
The 15-nation currency traded near a seven-month high against the yen after European Central Bank Executive Board Member Juergen Stark said markets understood the bank's signal to raise borrowing costs next month, though he discounted a ``series'' of increases.
``Interest rate expectations and ECB hawkishness make no cases as yet for the euro to turn,'' said Benedikt Germanier, an analyst at UBS AG in Stamford, Connecticut, in an interview on Bloomberg Television. ``It's too early to sell euro-dollar.''
The euro has ``come down very hard,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``We do require a bit of consolidation, and that is giving the euro a break.''
``It's possible for the Beige Book to confirm that there's still weakness in housing and employment in some parts of the U.S.,'' said Takuma Kurosawa, global markets treasurer in Tokyo at HSBC Bank, a unit of Europe's biggest lender. ``Given the dramatic shift in U.S. currency policy in favor of a strong dollar, the Beige Book may not do much to unsettle the dollar.''
The 15-nation currency traded near a seven-month high against the yen after European Central Bank Executive Board Member Juergen Stark said markets understood the bank's signal to raise borrowing costs next month, though he discounted a ``series'' of increases.
``Interest rate expectations and ECB hawkishness make no cases as yet for the euro to turn,'' said Benedikt Germanier, an analyst at UBS AG in Stamford, Connecticut, in an interview on Bloomberg Television. ``It's too early to sell euro-dollar.''
The euro has ``come down very hard,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``We do require a bit of consolidation, and that is giving the euro a break.''
``It's possible for the Beige Book to confirm that there's still weakness in housing and employment in some parts of the U.S.,'' said Takuma Kurosawa, global markets treasurer in Tokyo at HSBC Bank, a unit of Europe's biggest lender. ``Given the dramatic shift in U.S. currency policy in favor of a strong dollar, the Beige Book may not do much to unsettle the dollar.''
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