London — The dollar sagged to a low of more than a year and European stocks climbed on Tuesday, as investors bet that subdued US inflation and political strains in Washington would limit Federal Reserve interest rate moves for the rest of the year. The Fed starts a two-day meeting later in the day to discuss its monetary stance and the timing of its long-awaited balance sheet reduction, a plan most likely to be detailed in September. There is a growing sense that it will want to tread carefully, and markets were reflecting that with cautious risk appetite in Europe, where sentiment also got a boost from "euphoric" German economic data and news that Greece was tapping capital markets for the first time since 2014. Strength among commodity firms and banking stocks as well as a string of solid updates also boosted European shares, as the euro, the pound and the region’s other main currencies took advantage of the soft dollar. The US currency was stuck at its lowest since June 2016 to a...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.