FOREX-Dollar near 20-year highs, euro jumps on ECB rate rise talk
The dollar edged down on Friday but remained near 20-year highs against major peers, while the euro jumped on European Central Bank members talking up a return to positive rates this year. The safe haven greenback has broadly strengthened in recent weeks in response to global recession fears, and on bets that the Federal Reserve will tighten monetary policy faster than others to stem runaway inflation.
But after hitting a fresh 20-year high of 104.07 earlier in the trading session, the dollar index lost momentum and was last down 0.3% at 103.29. The fall was partly explained by gains made by the euro, which gained as much as 0.6% on the day. The euro was last up 0.5% at $1.0587.
The single currency was lifted by comments made by French central bank chief Francois Villeroy de Galhau, who said the ECB should raise its deposit rate back into positive territory this year. The ECB has been moving slowly to remove support this year, but…
