The common currency of the European Union climbed to its highest rate in about 30 months against the world's reserve currency on Tuesday in the aftermath of the European Central Bank leaving monetary policy unchanged, according to Reuters.
The upward drive of the euro is likely to continue as the ECB accepts the impact of the strong euro on deflation. ECB president Mario Draghi said earlier this month that the economic recovery of the region is growing stronger.
"The ECB is incredibly relaxed about inflation and that means only one thing for the euro – up," partner Howard Jones with RMG Wealth Manager told Reuters on Tuesday, also noting a continued climb for the 18-nation currency is likely. But he said the euro's performance is likely to be impacted by data released by the U.S.
Analysts told Reuters that the shared currency is likely to continue pushing higher against the U.S. dollar in the near term.
Christian Noyer, a member of the ECB Governing Council, said the uptick for the euro is fomenting an increased amount of pressure on the regional economy, according to Bloomberg.
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