The Euro to USD is pushing close to its highest-level in a week against as the US currency took a beating in the markets on Tuesday.
Comments made by Fed Chairman Janet Yellen recently compounded the Dollars losses after she said that the ongoing slack seen in the US labour market means that accommodative policies will have to be kept in use for some time. Concerns over her comments combined with last week’s disappointing nonfarm payrolls data with investors growing increasingly jittery ahead of the release of the Federal Reserve’s policy meeting minutes for March.
A day of weakening for the US Dollar was exacerbated after the Bank of Japan indicated it was likely that it would not need to introduce further stimulus measures. Stronger than expected industrial and manufacturing reports out of the UK sent the Pound to a four year high against the ‘Greenback’.
Positive comments made by the International Monetary Fund were unable to offer the Dollar support. The organisation said that a stronger US economy will help the global economy withstand weaker recoveries in emerging markets.
The currency was further knocked however after the IMF cut its global growth forecast for 2014. It cut its expectations from the 3.7% it predicted in January to 3.6%.
The Euro meanwhile continued to find support from recent comments made by European Central Bank policy maker Yves Mersch who said that he does think that there is any threat from deflation in the Eurozone and that there is no need for the ECB to introduce Quantitative easing.
Current Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3788 ,
Euro,,British Pound,0.8242 ,
Euro,,Australian Dollar,1.4757 ,
Euro,,Canadian Dollar,1.5074 ,