Euro up 0.93% to highest since 2021 as policy gaps widen
(Source: baha news)
The euro reached on Thursday its highest level since November 2021. By 12:30 pm CET, it had gained 0.93% against the dollar, reaching $1.15967, driven by mounting policy divergence and rising global trade concerns.
The rally follows signals that the European Central Bank may pause its rate-cut cycle after bringing the deposit facility rate down to 2%. Meanwhile, the US dollar weakened on softer inflation data and expectations that the Federal Reserve may begin easing as early as September.
By 12:30 pm CET, the euro had gained 0.93% against the dollar, trading at $1.15967.