Euro, sterling stronger

The euro was at $1.3655 in relation to the US dollar at mid-morning in London, just below its record high of $1.3670, reached in December 2004. The euro was also 0.1 percent higher to ¥161.74 versus the Japanese yen. By mid-afternoon in New York, the European currency had dropped back a bit against the greenback, to $1.3642, while it was at ¥161.92 against the yen. The shared currency was stronger after the latest Ifo survey of German business sentiment was higher than had been predicted, making most analysts nearly certain that the European Central Bank will raise interest rates in June.

Despite its strength, the euro dropped 0.1 percent early in the day to £0.6805 against sterling early in the day on strong UK economic growth in the first quarter. Later in the day the euro was at £0.6813 in relation to the UK currency. Sterling was also higher versus the greenback, rising 0.2 percent.

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