Euro gains on USD, yen, pound

The euro was helped Tuesday in relation to the dollar and other currencies after the governor of the Bank of France said there is optimism that the economy of the European Union will continue to grow.

The US dollar declined versus the euro on Tuesday amid continuing speculation that the US Federal Reserve will cut interest rates again soon and on expectations that US homebuilder sentiment will hold at just above record lows this month rather than getting better, with the dollar trading at $1.4743 to the euro just before noon in New York.

The yen lost ground to the euro as gains in equities markets made more investors interested in pursuing high-risk carry trades.

In midday trade in New York, the yen was trading at ¥158.4135 to the euro while it traded at ¥107.4500 to the US dollar and at ¥209.5972 to the pound.

The pound declined on bad news from the banking sector, trading at 75.58p to the euro while it cost $1.9506 to buy a pound.

The Australian dollar, on the other hand, gained versus most major currencies after a central bank official said that inflation could make it necessary to increase interest rates there.

The aussie traded at A$1.0865 to the US dollar, at A$1.6018 to the euro, and at A$2.1193 to the pound.

Story link: Euro gains on USD, yen, pound