Euro holds at a three-year high as traders wait for the ECB to make a move
London — The euro steadied at a three-year high on Thursday and shares inched back as traders waited to see if the European Central Bank (ECB) would try to cool the currency’s hottest run in nearly four years. Concerns about US protectionism kept the dollar weak after its worst day in six months, but it was the ECB’s first meeting of 2018, and when it will end its €2.6-trillion stimulus programme, that was attracting attention. Another challenge facing policy makers is how to address the euro’s surge — it hit a three-year high of more than $1.24 on Thursday — as this could dampen inflation and endanger the work done by years of unprecedented stimulus. Eurozone bonds were again reducing the premium offered by former debt-crisis countries, such as Greece, Portugal and Spain, compared with ultra-safe German debt, but it will be a delicate balancing act for ECB president Mario Draghi. Oil prices, which are a major driver of inflation, hit $71 per barrel in Asian trading for the first ti...
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.