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Monday, 5 Jul 2010
EUR Trades Lower on Steady Rate Expectations
The euro retreated from a 6-week high against the U.S. dollar on Monday, on speculation that the European Central Bank (ECB) will keep its benchmark interest rate at a record low later this week amid fears of a slowdown in global economic growth.
On Thursday, the ECB is to announce its benchmark interest rate. It is widely expected to hold the rate at its current record low level of 0.5%. This comes amid signs of a slowdown in the pace of the global economic recovery.
As a result, the EUR began trading lower against its primary counterparts. The 16-nation single currency fell to 1.2522 against the USD, and as low as 0.8258 versus the British pound.
