The euro has risen to a three week high against the dollar after an IFO Institute report showed an unexpected gain in German business confidence in May. The better than expected figure will give the ECB a freer hand to raise rates and tackle soaring inflation. Bloomberg:
“Ifo obviously shows the German economy is very resilient and is in a much better position than the rest of the world,” said Derek Halpenny, head of global currency research at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “The euro will appreciate again and start hitting new all-time highs on the back of the resilience of the German economy.”
The euro climbed to $1.5735 as of 6:13 a.m. in New York, from $1.5646 yesterday. It also advanced to 80.04 pence per pound, from 79.49 yesterday, and traded at 162.72 yen, from 162.22. The yen climbed to 103.38 per dollar, from 103.68.
Business Insider Emails & Alerts
Site highlights each day to your inbox.