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.