ST: Euro hits 15-month high as investors wait for ECB
NEW YORK (AP) — The euro has risen to a 15-month high against the dollar a day before the European Central Bank is widely expected to increase interest rates in the euro bloc.
Central banks raise interest rates to curb inflation. Higher rates also tend to increase demand for the currency linked to that country or region. The Federal Reserve, meanwhile, is not expected to lift rates yet.
In morning trading Wednesday in New York, the euro was trading at $1.4285 from $1.4220 late Tuesday. Earlier in the day, the euro peaked at $1.4319, its highest level since January 2010.
In other trading, the dollar is up to 85.31 Japanese yen from 84.82 yen after hitting a nearly six-month high of 85.52 yen earlier. The British pound fell to $1.6274 from 1.6283.
