Euro hits 6-month low vs dollar
Euro hit six-month low against dollar as investors bet the Fed will raise interest rates next month.
NEW YORK (AFP) - The euro sank to a six-month low against the dollar Tuesday as investors bet the Federal Reserve will raise interest rates next month, while its eurozone counterpart mulls further easing.
"Dollar bulls have re-emerged on expectations of a December rate hike from the Fed when all other central banks, including the Bank of England, aren t even on the tightening spectrum," said market analyst Jasper Lawler at CMC Markets UK
The euro was under pressure from remarks by Erkki Liikanen, a member of the European Central Bank s governing council.
"ECB member Liikanen said that the central band stands ready and willing to act, firming speculation that a cut in the deposit rate is in the works for December," XE Market Analysis said in a blog.
The euro fell to $1.0675, its lowest level since late April. It recovered to $1.0727 around 2200 GMT, down from $1.0748 at the same time Monday.
Kathy Lien of BK Asset Management said that investors were preparing for dovish comments from ECB President Mario Draghi on Wednesday.
"If he doesn t waver from his recent comments, we could see the EUR/USD drop below the April spike lows near 1.0660 and make its way towards 1.05," she said.
