The euro led the gains, up 1.1% to $1.0687. Since the multi-year low hit on May 13 at $1.0349, the common currency has gained 3.3%.
The President of the ECB, Christine Lagardesaid in a blog post that the bank is likely to lift the euro zone deposit rate from its negative level by the end of September, and could raise it further if it sees inflation stabilize at 2%.
The euro’s rise came as the dollar fell broadly, with selling starting to accelerate last week.
“We see this as a temporary (dollar) correction for now. If we look at the main reasons why the dollar has strengthened so much in recent months, we don’t think the fundamental story has changed significantly over the past week.” said Lee Hardman, an analyst at MUFG.
“However, in the very short term there is a risk that this downward correction could extend further,” he added, pointing to a build-up of long dollar positions in recent weeks that leaves the market vulnerable.
The dollar index, which has advanced nearly 16% to a two-decade high of 105.01 in the 12 months to mid-May, was down 0.8% at 102.15.
By Huw Jones of Reuters news agency
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
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
