Euro slide halted by ECB hint at higher interest rates

0 Comments | AFP, November, 2005

LONDON (AFP) — The euro's slide towards two-year lows against the dollar came to an abrupt halt Friday after European Central Bank (ECB) chief Jean-Claude Trichet gave his strongest hint yet that interest rates in the 12-nation eurozone would rise in December.

The euro changed hands for 1.1747 dollars in late European trading from 1.1748 dollars late on Thursday in New York.

The dollar stood at 119.16 yen from 118.79 yen on Thursday.

"After two and a half years of maintaining historically low interest rates, I consider that the governing council is ready to take a decision on interest rates," Trichet said in a speech at the European Banking Congress.

He added that interest rates would still contribute to sustainable growth and job creation.

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