Euro Rises as ECB Takes Steps to Scale Back Emergency Measures
By Lukanyo Mnyanda and Anna Rascouet
Dec. 3 (Bloomberg) — The euro rose against the dollar and posted its biggest gain in a month versus the yen as European Central Bank President Jean-Claude Trichet announced the first steps toward scaling back emergency stimulus lending.
The euro climbed to near its strongest level in 16 months versus the dollar after Trichet told reporters in Frankfurt the need for such stimulus measures has diminished. It pared some of the gains after he said the recovery will be “uneven.” The yen slipped against higher-yielding currencies as the MSCI World Index of stocks gained for a fourth consecutive day.
“The fact is that stimulus is being withdrawn and growth is a little firmer than expectations,” said Jeremy Stretch, senior currency strategist at Rabobank International in London. “That’s keeping the euro well supported.”
