WASHINGTON: The euro recovered from a two-month low Thursday after European Central Bank (ECB) President Christine Lagarde said inflation remained too high and further policy tightening was necessary.

Data showed on Thursday that inflation in the 20 nations sharing the euro eased to 6.1% in May from 7.0% in April, below expectations for 6.3% in a Reuters poll of economists. But the current level is still more than three times the ECB’s 2% inflation target.

The euro was last up 0.36% to $1.07265, off a two-month low of $1.0635 touched on Wednesday after some European countries released national inflation data showing signs price pressures have eased.

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