Euro hits three-year high as optimism lifts expectation of tighter policy
London — The euro hit a fresh three-year high on Monday as optimism around growth buoys the expectation of tighter policy from central banks, while the chance of a pro-European coalition in Germany also boosted confidence in the continent. With the world in general and Europe in particular showing signs of sustained economic growth, global stock benchmarks jumped to fresh highs, even though investors are now pricing in the withdrawal of central banks’ extraordinary stimulus. That view was given further fuel last week by an account of European Central Bank (ECB) discussions that suggested policy makers could soon start preparing the ground for a reduction in support. The single currency rose to $1.2227 at one stage on Monday, a price last seen in December 2014, just before the ECB first announced its massive government bond purchase programme. Nor is the ECB the only game in town: Bank of Japan (BoJ) governor Haruhiko Kuroda offered a positive view on his nation’s economy and inflati...
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