Traders reduced their bets against the single currency as Lagarde’s comments combined with resilient business activity data boosted appetite for the currency, although gains were limited ahead of the release of the latest policy meeting minutes. Federal Reserve monetary policy, scheduled for Wednesday.
“If you are correct in suggesting that rates will no longer be negative in the third quarter, potentially meaning two hikes in the next four months, and if you are looking for an economic case for tightening policy, then today’s European PMI figures they were certainly strong enough,” said Stuart Cole of Equiti Group in London.
The euro, which soared on Monday after Lagarde signaled that eight years of negative rates in the euro zone will likely end by late summer, extended gains.
The single currency added 0.2% to 1.0707 Dollars, after Lagarde said on Tuesday that she saw the ECB’s deposit rate at zero or “slightly above” that level at the end of September, implying an increase of at least 50 basis points from its current level.
The euro fell to a January 2017 low of $1.0349 earlier this month but has since rebounded 3.6% in just seven sessions.
The single currency’s gains pushed the dollar to a new one-month low as a broad sell-off in equity markets failed to boost the safe-haven appeal of the US currency.
How much is the euro trading today May 24 in Argentina
The euro operates today, May 24, at 122.25 for purchase and 130.40 for sale. This value reflects that the currency is offered unchanged from the previous day.
According to the information published by the Central Bank, in the last five trading days the euro has shown an upward trend, with a rise of 1.51 percent, since it began this period with a value of 120.43 for purchase and 128 .57 for sale.
When analyzing the performance of the currency throughout the year, it can be seen that the price of the euro has risen by 7.50 percent; compared to the first days of the year when the blackboards showed a 113.72.
More news about the Blue Dollar and the Dollar
Key moment for savers: Bet on inflation or start dollarizing?
Investments: how to hedge against the jump in inflation and the rise in rates?
Dollar: what will happen and what to invest in
Inflation and interest rates: how to plan your investments?
Source: Ambito
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