The Euro has strengthened against the US Dollar, recovering from close to a three-month low after the European Central Bank chose to maintain its interest rate at the record low level of 0.75% and as Bank governor Mario Draghi said that the region’s economy will stabilize this year. The single currency also advanced for a second day against the Japanese Yen.
Draghi told gathered journalists at his monthly press conference that the Eurozone should see a ‘gradual recovery’ in 2013 although the pace of monetary expansion remains subdued. His words caused the single currency to rise to its strongest position in a month against the US Dollar.
A future change to the rate could be on the cards after the ECB singled out the uneven transition of the record-low interest rates across the region as the main problem. Economists doubt that any further rate cut would have any impact on easing the crisis.
“Interest rates are not the problem, but the spread between interest rates in the Eurozone’s core and the periphery. Not much can be achieved with a cut and the ECB seems to be aware of this,” said Michael Schubert, economist at Commerzbank.
The Bank also announced that it would not take drastic action to help Italy or other struggling Eurozone nations, despite the threat of political turmoil adding to the Euro crisis.
Current Euro exchange rates
As of 14:40 am
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8690
The Euro to US Dollar exchange rate is currently trading in the region of 1.3089
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.2735
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.5762
Comments are closed.