The monetary unit notched its top value in 11 months against the U.S. dollar while was driving toward seven-month-high gains against the currency of the Pacific Rim nation. The primary driver of the gains was the European Central Bank noting financial institutions in the area are set to return more three-year loans than forecast. Next week will see 278 banks remit more than $137 billion in euros, well more than the figures estimated by analysts polled by Bloomberg and Reuters.
“This is more than we had expected and underlines the material improvement in funding conditions for most European banks in the past twelve months,” credit analyst Michael Symonds with Daiwa Capital Markets told Reuters on Friday.
Ifo, a German think thank that administers a business climate index, said this month’s figures rose to 104.2 after having checked in last month at 102.4 last month.
Reuters economists forecast the banks’ repayment would amount to 100 billion while Bloomberg economists’ projections totaled 84 billion, according to median estimates.
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