LONDON: The euro rose to its strongest in three weeks against sterling on Monday as investors cut short euro positions and an uncertain UK interest rate path and parliamentary elections in May weighed on the pound.
Last week was the best for the euro since late 2011 against the dollar, boosted by a broad sell-off in the greenback after the U.S. Federal Reserve cut its growth forecasts and signalled signalled a later rise in interest rates than had been expected.
On Monday St Louis Fed President James Bullard said the dollar was trading near its fair value against a basket of currencies.
The euro gained 0.8 percent against the pound to trade at 72.92 pence, its highest since March 2, before the European Central Bank began its 1.1 trillio euro bond-buying programme.
Comments
Comments are closed for this article.