The dollar was weaker against most of the major currencies today as investors bet on the continuation of the “QEII” stimulus spending program. The euro was also boosted on speculation that the European Central Bank will make overtures towards the need to raise interest rates in the Eurozone.
“As long as the Fed retains its stance, the interest-rate differentials will move against the dollar,†said Neil Jones, head of European hedge fund sales at Mizuho Financial Group Inc. in London. “There’s a lot of bullish sentiment that Trichet will move to a more hawkish stance and discuss removing the stimulus. That’s one of the key reasons for euro strength.â€
Source: Bloomberg
