The euro rose to a two-week high after European Central Bank President Mario Draghi pointed to signs of improvement in the region’s economy.
The 19-nation currency strengthened against most major peers as Draghi said inflation would start accelerating later this year. While he was committed to seeing through the central bank’s quantitative-easing program, the ECB president said there was no need to expand its bond-purchase program. Germany’s 10-year bond yield increased to the highest this year, adding to the allure of euro-denominated assets.
Gaffney said he expects the euro to fall in the longer term and sees the rally as a selling opportunity.
The euro advanced 0.9 percent to $1.1251 at 2:53 p.m. in New York, touching the highest since May 19. It climbed 1.1 percent to 139.93 yen, reaching the strongest since Jan. 13. The dollar added 0.2 percent to 124.37 yen.
Source : Bloomberg