Euro rallies to five-month high against dollar

Business Materials 6 April 2011 14:27 (UTC +04:00)

Azerbaijan, Baku, April 6 / Trend /

The euro rallied to a five-month high against the dollar, appreciating as much as 0.4 percent to $1.4281, the strongest level since November 4, Bloomberg reported.

The shared currency traded at $1.4274 as of 7:19 a.m. in London.

According to a senior economist at Standard Chartered Plc Sarah Hewin, the current rise in the euro is very much interest- rate driven."Markets are increasingly shifting from the view of a one-and-done rate hike at the next meeting, to one that sees more rate hikes further out", Hewin said.

The ECB will increase its main rate by 25 basis points to 1.25 percent tomorrow, according to all 57 economists surveyed by Bloomberg.