Euro settles against dollar

Published: 13 May at 8 AM Tags: Euro, Dollar,

Although the euro appears to have stabilised against the US dollar, the single currency could still come under further pressure if the European Central Bank introduces measures to limit its strength over the longer term. The euro is currently trading near a one-month low at $1.3755. On Friday the euro dropped 1.2 per cent to $1.3745 after ECB head Mario Draghi hinted that action could be taken to boost economic growth in the eurozone.

The single currency has bounced back a tad against sterling and is trading at 81.56 pence. Last Friday saw a drop to 81.43 pence, a 16-month trough. The pound is finding some support from the possibility of a Bank of England rate hike as the UK economy continues to recover.

According to UK retailers sales were up in June. Increasing house prices mean shoppers were out in force over the Easter weekend buying home decor supplies.

Sterling is also up against the dollar at $1.6869. However the greenback has improved against the Japanese currency and is currently trading at 102.22 yen.

Elsewhere the Australian dollar remains little changed at $0.93.59. Investors are now concentrating on economic data due to be released by Australia’s largest trading partner China and the upcoming budget.