Euro Gains on Speculation ECB in No Hurry to Cut Rates

The euro rose against the dollar and yen after European Central Bank President Jean-Claude Trichet signaled policy makers were in no hurry to cut interest rates., Bloomberg 2/10/2008 6:35:32 PM

The euro gained against 11 of the 16 most-traded currencies after Trichet said yesterday the economic ``fundamentals were good'' and no one on the ECB council sought a cut at their meeting last week. The currency slumped last week as Trichet said uncertainty about growth was ``unusually high.''

``The euro is firmer on the strength of comments Trichet made,'' said Ray Attrill, director of foreign exchange research at Forecast Ltd. in Sydney. ``If you thought the euro had fallen on the ECB's change of tone, then this accounts for a recovery.''

The euro advanced to 156.08 yen at 8:26 a.m. in Singapore from 155.71 yen late in New York Feb. 8. The currency traded at $1.4532 compared with $1.4504. It also rose to 74.63 pence versus the British pound from 74.55. The yen was at 107.44 per dollar from 107.30. The euro may rise to 157.50 yen and $1.4650 this week, Attrill said.

Moves in currencies may be exaggerated as trading is likely to be below average because of Chinese New Year celebrations and a public holiday in Japan today, Attrill said.

Euro Gains on Speculation ECB in No Hurry to Cut Rates