Euro Climbs to Four-Month High as Trichet Says Rates May Rise |
| Bloomberg - Mar 3, 2011 |
The euro climbed to four-month highs versus the dollar and yen after European Central Bank President Jean-Claude Trichet said the ECB may raise interest rates next month to counter accelerating inflation.
The shared currency gained against 14 of its 16 most-traded counterparts as Trichet said an “increase of interest rates in the next meeting is possible,” speaking in Frankfurt after the central bank left its main refinancing rate at 1 percent. The dollar strengthened to the most in a week versus the yen after U.S. initial jobless claims unexpectedly fell to the lowest level in almost two years and service industries expanded.
“This is Trichet at his best,” said John Taylor, chairman of New York-based FX Concepts LLC, the world’s biggest currency hedge fund. “He’s thinking about how strong the German economy is and how strong the French economy is, and he’s acting on inflationary threats, which is what the ECB always does.”
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- Posted: 2011-03-03 11:04:11
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