Euro near multi-month high as markets bet on ECB stimulus boost

Euro near multi-month high as markets bet on ECB stimulus boost

04 Jun 2020 09:26 AM
 

The euro held near multi-month highs against rival majors Thursday on expectations the European Central Bank will expand its bond-buying program later in the day to shore up the coronavirus-stricken economy.

The euro's strength helped to push the dollar's index against a basket of key currencies to the lowest level in nearly three months.

The euro stood at $1.12305, having risen to $1.1258 on Wednesday, its highest levels since mid-March and the seven straight sessions of gains.

The European Central Bank is widely expected to increase the size of its 750 billion euro ($669 billion) Pandemic Emergency Purchase Programme (PEPP) as early as Thursday.

The ECB delivers its policy decision at 5:15 pm  and ECB President Christine Lagarde holds a news conference at 6:00 pm.

The currency has been bolstered by hopes for European Union-wide fiscal support measures after Germany last month threw its weight behind the idea of a European Union recovery fund, breaking away from its long-held tradition to resist moves towards fiscal integration in the currency bloc.