BLBG: Euro May Rise on Quantitative-Easing Delay, Bank of Tokyo Says
The euro may rise against the dollar because European Central Bank policy makers will probably decide against introducing so-called quantitative easing when they meet May 7, Bank of Tokyo-Mitsubishi UFJ Ltd. said.
“The failure to move to quantitative easing in the near term should help support the euro, especially against the dollar, given the Federal Reserve’s contrasting aggressive monetary easing approach,” Lee Hardman, a foreign-exchange strategist in London, at Bank of Tokyo, wrote in a note today. “The removal of uncertainty will likely let the euro off the leash which has held it back over the last couple of months, with the potential for a period of euro catch-up strength.”
The euro climbed 0.2 percent to $1.3429 as of 1:54 p.m. in London.
