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Dollar gains, as predicted ECB rate hike priced in
AFP, June, 2008
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NEW YORK (AFP) — The dollar notched up slight gains Monday against other major currencies as traders said the market had mainly priced in an expected interest rate hike this week by the European Central Bank (ECB).
The dollar nonetheless remains depressed on currency markets, having fallen significantly in the past year amid US economic woes.
The euro was changing hands at 1.5745 dollars around 2100 GMT, down from 1.5775 late Friday.
The dollar also gained against the Japanese yen, to 106.13 from 106.01 Friday.
"The market has nearly fully priced in a quarter point hike by the ECB this week," said Melinda Smith at ABN Amro
The conviction that the ECB will tighten credit was strengthened by the June eurozone inflation data.
Analysts at Commerzbank said the euro could ease further against the dollar "if, as we suspect, (ECB head Jean-Claude) Trichet signals no further ...
