What you need to know about the Euro-dollar rally
EURO-Dollar Rally – November 16, 2018 – 3:45:30The euro fell 0.7% to $1.1574 in afternoon trading on Friday.
The rally has been fuelled by the Federal Reserve’s decision to lower interest rates, the drop in the dollar and fears of a slowdown in the world economy.
The dollar has gained around 10% against the euro this year.
The Fed’s decision on Friday to cut interest rates by a quarter percentage point is one of the factors that drove the rally, said Rohan Jain, senior economist at the BNP Paribas Group in New York.
The U.S. dollar fell to $US1.1976 against a basket of major currencies including the euro, Japanese yen, Swiss franc, German mark and Canadian dollar.
The European Central Bank’s decision last month to hike rates to an unprecedented level in a quarter-century was one of several factors driving the dollar rally, Jain said.
The euro was trading around $1,221.70 in New Zealand, down from its $1 the previous day.
The Japanese yen fell to 113.6 yen from 116.2 yen on Friday, its lowest level in more than three weeks.
The Swiss franc fell to 84.94 from 86.7 and the Canadian dollar to 94.49 from 95.14.