Euro, sterling see gains

The euro gained on the US dollar and the yen on Monday after officials with the European Central Bank made remarks that showed they are concerned about inflation, prompting speculation that Eurozone interest rates could rise again soon.

The shared currency traded at €1.4715 to the US dollar in early afternoon trade in New York, while it took ¥164.3738 to buy a euro.

Sterling saw gains in relation to most currencies when manufacturing output prices in the UK were reported up in November by the London’s Office of National Statistics.

It took €1.3902 to buy a pound in New York trade.

The dollar’s declines were limited by new predictions that the Federal Reserve will cut US interest rates by only a quarter point when it meets this week, to 4.25 percent, rather than to 4 percent as had been forecast earlier.

The greenback was trading at $2.0457 to the pound in afternoon trade in New York, while it sat at ¥111.7050 to the dollar.

In New York trade, the Swiss franc traded at SFr1.1280 to the US dollar, at Sfr1.6599 to the euro, and at SFr2.3077 to the pound.

The declines for the Swiss currency came on the belief that the Swiss National Bank will hold interest rates steady at its next meeting and as investors continued to seek out risk.

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