Hurt Dollar Hits New 1-Month Low; Lagarde boosts the euro

Against a basket of its rivals, the dollar fell 0.3% to 101.79, its lowest level since April 26.

The euro, which was the main gainer on Monday after European Central Bank President Christine Lagarde indicated that negative interest rates, a feature of the eurozone for eight years, will most likely be phased out by now. the end of the summer, extended its gains.

The single currency was up 0.4% at $1.0729 at the start of London trading as traders reduced some of their short bets after Ms Lagarde said interest rates were likely to be in positive territory by now. the end of the third trimester.

“Many observers will continue to see the ECB as too hesitant, but the fact that a take-off is now very likely in July and the ECB appears willing to raise rates further after that is positive for the euro,” the strategists said. of Commerzbank in a note.

The euro fell to its January 2017 low of $1.0349 at the start of the month, but has rebounded 3.6% from that low in seven trading sessions.

The risk-sensitive Australian dollar fell 0.41% to $0.70815, while the New Zealand kiwi lost 0.46% to $0.6438, a day before the Reserve Bank of New Zealand raised its key rate by half a point, according to forecasts.

Stock markets slid with US stock futures down more than 2%.

Trading has been volatile, with the Currency Market Volatility Index holding steady at 9.6%, not far from a two-year high above 10.5% reached earlier this month.

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