Currency Headlines
Euro Rallies to Highest Since 2011 as ECB Balance Sheet Shrinks
The euro touched the highest level against the dollar in 14 months as the European Central Bank’s balance sheet contracted while the Federal Reserve said it would continue pumping money into the U.S. economy.
The 17-nation currency gained for a second week, its first back-to-back advance this year, amid data that showed Europe’s economy may be improving. The yen fell versus the dollar for a 12th straight week, the longest since at least 1971, amid bets Prime Minister Shinzo Abe will pick a new central-bank governor who will boost monetary stimulus. South Korea’s won slid versus all of its major peers. The ECB meets Feb. 7 on interest rates.
The shared currency rallied 1.3 percent to $1.3640 this week in New York. It touched $1.3711, the strongest level since Nov. 14, 2011. Against the yen, the euro climbed 3.6 percent, the most since February 2012, to 126.66 and touched 126.97, the highest since April 2010.
Pound Falls Versus Euro as Data Signals Recovery Stalling
The pound declined for a fourth week against the euro, the longest streak since September, as economic reports on consumer confidence and manufacturing suggested the U.K. economic recovery is petering out.
Sterling fell to a 15-month low against the single currency as data showed economic confidence in the euro area improved in January, adding to signs the region’s debt crisis is easing. Gilts dropped for a second week before policy makers meet amid speculation they will hold their bond-buying program at 375 billion pounds ($590 billion).
“With the euro story improving, the pound is losing its safe-haven status somewhat,” said Robert Mialich, a currency strategist at UniCredit Global Research in Milan. “And it doesn’t help that the U.K. economic outlook isn’t promising. People are increasingly questioning the country’s AAA status. We expect sterling to weaken further.”
The pound depreciated 2.1 percent to 87.97 pence per euro at 5:05 p.m. in London yesterday, when it touched 87.17 pence, the weakest level since October 2011. Sterling dropped 0.4 percent to $1.5734 for a third week of declines.
A gauge of U.K. manufacturing output fell to 50.8 this month from a revised 51.2 in December, Markit Economics and the Chartered Institute of Purchasing and Supply said yesterday
Euro Rallies to Highest Since 2011 as ECB Balance Sheet Shrinks
The euro touched the highest level against the dollar in 14 months as the European Central Bank’s balance sheet contracted while the Federal Reserve said it would continue pumping money into the U.S. economy.
The 17-nation currency gained for a second week, its first back-to-back advance this year, amid data that showed Europe’s economy may be improving. The yen fell versus the dollar for a 12th straight week, the longest since at least 1971, amid bets Prime Minister Shinzo Abe will pick a new central-bank governor who will boost monetary stimulus. South Korea’s won slid versus all of its major peers. The ECB meets Feb. 7 on interest rates.
The shared currency rallied 1.3 percent to $1.3640 this week in New York. It touched $1.3711, the strongest level since Nov. 14, 2011. Against the yen, the euro climbed 3.6 percent, the most since February 2012, to 126.66 and touched 126.97, the highest since April 2010.
Pound Falls Versus Euro as Data Signals Recovery Stalling
The pound declined for a fourth week against the euro, the longest streak since September, as economic reports on consumer confidence and manufacturing suggested the U.K. economic recovery is petering out.
Sterling fell to a 15-month low against the single currency as data showed economic confidence in the euro area improved in January, adding to signs the region’s debt crisis is easing. Gilts dropped for a second week before policy makers meet amid speculation they will hold their bond-buying program at 375 billion pounds ($590 billion).
“With the euro story improving, the pound is losing its safe-haven status somewhat,” said Robert Mialich, a currency strategist at UniCredit Global Research in Milan. “And it doesn’t help that the U.K. economic outlook isn’t promising. People are increasingly questioning the country’s AAA status. We expect sterling to weaken further.”
The pound depreciated 2.1 percent to 87.97 pence per euro at 5:05 p.m. in London yesterday, when it touched 87.17 pence, the weakest level since October 2011. Sterling dropped 0.4 percent to $1.5734 for a third week of declines.
A gauge of U.K. manufacturing output fell to 50.8 this month from a revised 51.2 in December, Markit Economics and the Chartered Institute of Purchasing and Supply said yesterday
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