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Euro Slides To 3-Week Low

Author:
Eray Bekir
Market News

The euro dipped below $1.12 to a three-week low against a stronger dollar on Tuesday as investors re-assessed their expectations of how much the Federal Reserve may cut interest rates by this month.

The nomination of IMF Chairwoman Christine Lagarde as the new head of the European Central Bank added to market participants’ worries that the ECB would be inclined to ease monetary policy faster than its U.S. counterpart.

“The euro’s failure to sustain a break higher reflects in part building expectations for more aggressive ECB easing, which has been reinforced by the recent nomination of Christine Lagarde to replace Mario Draghi as president when his term ends in October,” said MUFG analyst Lee Hardman in a note to clients.

The common currency fell to its lowest since mid-June at $1.1193.

The dollar index, which measures the greenback against a basket of other currencies, rose 0.1% to 97.47, a three-week high.

 

 

International Financial Markets Department

Euro-Finance Ltd.

forex@eurofinance.bg

www.eurofinance.bg 

*This material should not be considered as a recommendation for buying/selling securities.