Euro Declines as Interest Rates Can Hurt Indebted Nations
The euro pared its
Analysts predict that the European Central Bank will raise its benchmark rate by 25 basis points on April 7 from the record low of 1 percent. Such increase will be beneficial for the strong economies, like the German one, but can be disastrous for the peripheral nations, like Ireland and Portugal.
EUR/USD rose from 1.4231 to 1.4268 earlier today, but later dropped and traded at 1.4205 as of 9:33 GMT.
If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.
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Earlier News About the Euro:
- Euro Gains as Inflation Grows (2011-03-31)
- EUR/JPY Goes Up on Interest Rates Prospects (2011-03-29)
- Week of EUR/USD Weakness (2011-03-26)
- Euro Slips as Bailout Funds are Cut (2011-03-25)
- Euro Rises vs. Dollar as EU Summit Begins, ECB Rates Hike Expected (2011-03-24)
2 Comments
I HAVE A SHORT POSITION IN EUR/INR @ Rs.63.33 expiring APR 2011. In view of the rate hike in EURO ZONE where do you expect the pair to move?
If the rate is lifted, EUR/INR will probably soar to about 68-70 in a matter of few weeks.