Economic news

Euro firms as dollar rally stalls

The euro firmed near $1.15 level, retreating from seven-week trough on Wednesday as a drop in U.S. Treasury yields limited the dollar’s recent surge.

Photo: Reuters

The single currency traded at $1.1486 EUR having briefly touched $1.15 in Asian session.

The dollar index .DXY was stable at 95.692, near 96.163 scaled in the previous session — its top since Aug. 20.

The surge in treasury yields and worries over the equation of Italy’s public finances after the populist government proposed a budget plan attacked by the European Union have fueled another jump in the greenback in recent sessions, sending the currency to a 1 1/2-month peak.

The dollar lost its momentum in European trading on Wednesday, although analysts consider it was likely to prove a temporary respite for the common currency.

Traders are expecting that deepened inflation pressures will keep the Federal Reserve, which unlike its European counterpart is raising rates, firmly on its path, despite comments from U.S. President Donald Trump.

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