Euro down slightly as dollar regains strength

Published: 8 Apr at 5 AM Tags: Euro, Dollar,

Gains have been made by the US dollar following last week’s disappointing non-farm payroll figures which caused the greenback to stumble. Following the Easter break, the US currency has already risen 0.6 per cent against the yen to 120.325 yen. The greenback had fallen as low as 118.71 at the end of last week because the lackluster jobs figures cooled expectations that the Federal Reserve would be keen to hike interest rates in the near future.

The euro has lost 1 per cent to settle at $1.0820. The single currency had previously gone as high as $1.1036, but trading has remained thin because of the Easter holidays. The latest figures and the rebound of the dollar illustrate the divergence in monetary policy between the US and Europe.

Where the European Central Bank is committed to quantitative easing, the US Fed looks poised to push up interest rates at some point this year.

Elsewhere the Australian dollar has succeeded in adding 0.1 per cent and is currently trading at $0.7643. The Aussie peaked at $0.7711 after analysts were surprised by a decision by the Reserve Bank of Australia to stand firm on its monetary policy.

Sterling is also up 0.1 per cent at $1.4826.