Wednesday, July 4, 2007

Euro Trades Near Record High Versus Dollar, Yen Before ECB Policy Meeting

(Bloomberg) -- The euro traded near a record high
against the dollar and the yen on bets the European Central Bank
will signal at least one more interest-rate increase this year.

The ECB, which economists expect will hold rates at 4
percent today, may say policy is still accommodative and
inflation is a concern. The euro has gained 3.2 percent versus
the dollar this year as the spread between German and U.S. two-
year notes declined to the narrowest in 2 1/2 years. The British
pound was close to the strongest in 26 years on speculation the
Bank of England will lift borrowing costs today.


Read more at Bloomberg Currencies News

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