Euro retreats influenced by the possibility of European rate cut

Euro retreats influenced by the possibility of European rate cut

Euro consolidation myth

The euro fell against the dollar after Ignazio Visco, a member of the Board of Governors of the European Central Bank, said that the bank may lower interest rate on deposits for less than the current level at zero.

This move contrasts with expectations of the Federal Reserve (Fed) which will soon reduces its asset purchase program. The euro fell to $ 1.2953 after the statements from about $ 1.2976 before.

The euro was down 0.2% to $ 1.2965, but remained above the lowest level in a month reached on Friday at $ 1.2935 on electronic trading platform APS.

YEN Suffered

The yen suffered new losses after avoiding the Group of Seven finance ministers direct criticism of Japan monetary policies, that drove its currency to its lowest level in four years.

The yen reached 102.15 yen to the US dollar at its lowest level since October 2008 as investors considered the results of the meeting of the Group of Seven green light to sell the currency.

The US dollar was steady in the latest trading at 101.65 yen, as investors reap profits from the rise in the dollar above 102 yen.

The Japanese currency has lost 10% of its value against the dollar, since the Bank of Japan announced bold measures to facilitate the cash on the fourth of April.


U.S Dollar

In front of a basket of currencies, the dollar index rose 0.1% to 83.266, near its highest level in six weeks, which struck Friday at 83.438.