New York — The euro rallied against the US dollar on Tuesday after European Central Bank (ECB) President Mario Draghi fuelled market expectations the ECB will reduce stimulus later this year, while the dollar’s weakness helped lift crude prices. Energy and bank sector stocks rose on Wall Street, leaving the S&P 500 and a global equities index little changed on the day. The euro hit its highest since early September versus the greenback at $1.1304 as Draghi, speaking to a conference in Portugal, said the ECB could adjust its policy tools as economic prospects improve in Europe. "Just the fact that the ECB is considering their options right now is considered to be a hawkish signal," said Sireen Harajli, FX strategist at Mizuho in New York. The dollar index fell 0.7%, with the euro up 1.03% to $1.1294. But the Japanese yen weakened 0.52% versus the greenback at 112.44 per dollar. Sterling was last trading at $1.278, up 0.47% on the day. The Bank of England raised banks’ capital require...
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