Tech & Biz

FOREX-Euro breaks through $1.60 on ECB rate outlook

by Pasi | April 22, 2008 at 09:08 am

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European Central Bank's (ECB) and FED's interest policies differ. ECB seems to be more worried about inflation and FED is more worried about recession. This means that interest rates are not expected to go down in Europe and Euro gets stronger against dollar.

The benefit for example in Europe with dollar falling is, that oil prizes has not raised as much as in USA.

NEW YORK, April 22 (Reuters) - The euro rallied against thedollar on Tuesday and traded above $1.60 for the first timesince its 1999 inception amid growing expectations the EuropeanCentral Bank's next move may be a hike in benchmark interestrates.

ECB Governing Council Member Christian Noyer said the bankwould do what is needed to bring inflation back to its targetof just below 2 percent, adding the central bank would moverates if needed.