Euro pushes higher on fed stimulus hopes

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Euro pushes higher on fed stimulus hopes

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Euro pushed higher against dollar as expectations of Federal Reserve stimulus actions continued.

24 August,2012 03:53 am

The euro pushed higher against the dollar Thursday as expectations of Federal Reserve stimulus actions continued to guide sentiment on the forex market.The euro rose to $1.2562 from $1.2522 late Wednesday, scoring its third straight gain on the greenback.David Starkey of Western Union said the strong hints at a new stimulus found in the minutes of the latest Fed policy meeting released Wednesday remained the dominant theme in trade for a second day.The report highlighted that many of the committee members feel that without substantial and sustainable improvement, additional stimulative initiatives will be needed fairly soon, said Starkey.This has been taken to mean that the Fed may be growing impatient with the pace of the recovery and looking to offer a helping hand.The aim of more stimulus would be to drive down long-term US interest rates, making the dollar a less attractive investment compared to other currencies.The dollar also fell against the Japanese currency, trading to 78.47 yen from 78.53 yen. The euro was higher, at 98.59 yen per euro compared to 98.34The British pound slipped on the dollar after a three-day rise, buying $1.5858 compared to $1.5878 a day earlier. The dollar fell on the Swiss franc, to 0.9559 francs from 0.9585 francs.