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Dollar reaches fresh highs against Euro and Yuan

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The U.S. dollar rose to fresh highs against the euro and a broad range of Asian currencies including China’s Yuan Friday, after the European Central Bank signalled overnight it could extend its current easing policies and as markets continued to bet on a U.S. interest-rate rise before year-end.

The euro fell to a seven-month low in Asian trading hours at $1.0930 (£0.89), down 0.3% from its Thursday close in New York.

The euro’s slide came after ECB chief Mario Draghi on Thursday suggested the central bank may extend its program of bond purchases beyond its scheduled expiration in March. Financial markets were rattled earlier this month by a media report suggesting that the ECB might start to wind down, or taper, those purchases, which are designed to pump more money into the financial system and stoke higher lending. But Draghi termed that report on Thursday as “uninformed.”

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Paul

The author Paul