GF: Euro rise from near three-week low against the dollar
London: The euro rose from a near three-week low against the dollar on Wednesday on hopes Italy can resolve its political gridlock, but gains could be fleeting after weak German data fanned talk of rate cuts.
A survey by Germany’s Ifo think-tank showed business morale dropped for a second month in April, fuelling concerns about the health of the Eurozone’s largest economy.
The survey knocked the euro, already vulnerable after German PMI data on Tuesday showed business activity dropping sharply in April.
Investors focused on the possibility of the European Central Bank cutting its main refinancing rate, which is already at a record low 0.75 per cent.
