You are here

Deal averting Brexit gives modest boost to euro, pound

Saturday, February 20, 2016 - 06:58

37519049 - 20_02_2016 - BRITAIN-EU_.jpg
The euro pushed higher against the dollar on Friday as European leaders reached a deal that will keep Britain in the European Union, avoiding a much-feared "Brexit."

[NEW YORK] The euro pushed higher against the dollar on Friday as European leaders reached a deal that will keep Britain in the European Union, avoiding a much-feared "Brexit."

Early in the day the dollar was ahead, after US consumer price data for January signaled a pickup in inflation that would support the Federal Reserve sticking to its plan to tighten monetary policy with higher interest rates over this year.

But as confidence in a deal between London and other EU leaders emerged, the euro turned course to end the day higher at US$1.1131.

The pound also got a modest boost to US$1.4392, once it became clear that the deal was in the works.

Even so, the yen showed more strength rising to 112.62 per dollar and 125.36 per euro.

Analysts tied some of the yen's strength to another fall in crude prices, as doubts increased over the tentative deal to control output between Opec producers and Russia.

AFP

sentifi.com

Market voices on:

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom