Uplifting sentiment about economic prospects helped the common currency of the European Union climb on Thursday to its 14-month high against the U.S. dollar as the European Central Bank convenes its monthly policy meeting, Bloomberg reports.
Following political scandal in Italy and Spain, two of the 17-nation bloc’s larger economies, concerns are overt regarding the strength of the euro. But, following the policy meeting, central bank President Mario Draghi is likely to note regional growth and development as the sovereign debt crisis is believed to be in its tail end of more than three years of damaging tendencies.
“There have only been 15 occasions when the ECB has expressed concern about the exchange rate – 10 on weakness, five on strength – since the monthly press conferences started,” states a Thursday client note authored by global foreign-exchange strategy head Adam Cole with Royal Bank of Canada in London, according to Bloomberg. “Recent movements had been much more extreme in all cases.”
Advances for the euro against the greenback thus far this year have been roughly 3.1 percent, the news source reports.
Interest rates are unlikely to change during the Thursday meeting, according to Reuters.
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