Euro rises on dollar to $1.2812
The euro rose on the dollar after the US Federal Reserve cut its interest rate last week, prompting investors to move capital to where it earns more return.business Updated: Nov 03, 2008 15:58 IST
The euro rose on the dollar on Monday after the US Federal Reserve cut its interest rate last week, prompting investors to move capital to where it earns more return. The 15-nation euro bought $1.2806 in early European trading, up from $1.2759 late on Friday in New York.
On Wednesday the Fed cut its benchmark rate to 1 per cent from 1.5 per cent.
"The dollar is retreating as the new trading month gets under way," said Gary Thomson, a currency analyst with CMC Markets. "As the week progresses, there's going to be no shortage of key numbers to work on, including rate verdicts from London and Frankfurt, with 50 basis point cuts expected from both central banks." The European Central Bank and the Bank of England are expected to cut interest rates this week from 4.5 per cent and 3.75 per cent, respectively.
In other currencies, the British pound bought $1.6220 on Monday from $1.6143, while the dollar bought 99.20 Japanese yen, from the 98.70 yen a dollar late on Friday in New York.