Dollar Rises Against Euro, Broad Range of Other Currencies

Date : 06/14/2018 @ 12:16PM
Source : Dow Jones News

Dollar Rises Against Euro, Broad Range of Other Currencies

By Ira Iosebashvili 

The dollar rose against the euro and a broad range of other currencies Thursday, as investors reacted to monetary policy decisions by the European Central Bank and the Federal Reserve.

The euro was recently down 1.2% at $1.1648. The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.5% to 87.58.

ECB officials laid out laid out plans Thursday to wind down its EUR2.5 trillion ($2.9 trillion) bond-buying program by December, but said it didn't expect to raise rates "at least through the summer of 2019."

A day earlier, the Fed raised its policy rate one-quarter percentage point to a range between 1.75% and 2% and penciled in two more increases in 2018, in a statement many investors read as hawkish.

Some analysts said expectations that the policy rates between the world's two biggest central banks will widen are likely to benefit the dollar and weigh on the euro by making the U.S. currency more attractive to yield-seeking investors.`

While the Fed's hawkish outlook will likely buoy the U.S. currency, "the euro remains vulnerable to retesting recent lows against the dollar," analysts at Commonwealth Foreign Exchange said in a note to clients.

Other European currencies, including the Swiss franc, Swedish krone and Polish zloty, also notched sharp losses against the dollar. Investors often use these currencies as proxies for betting on the euro, making them sensitive to fluctuations in the common currency.

Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

 

(END) Dow Jones Newswires

June 14, 2018 12:01 ET (16:01 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.


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