Euro Stays Higher as ECB Keeps Key Interest Rate at 0.75 Percent
The euro stayed higher versus the dollar and yen after European Central Bank policy makers kept their benchmark interest rate at a record-low 0.75 percent.
The decision was forecast by 48 of 52 economists surveyed by Bloomberg News, with four predicting a 25 basis-point cut. ECB President Mario Draghi will speak at a news conference to explain the decision at 2:30 p.m. in Ljubljana, Slovenia.
“There is a reasonable minority that is looking for a rate cut,” Adam Cole, global head of foreign-exchange strategy at Royal Bank of Canada in London, said before the decision. “We don’t, but recognize there is a risk. To the extent that there is that minority expectation, no change would probably be a small positive for the euro.”
The euro rose 0.4 percent to $1.2957 at 12:45 p.m. London time. The common currency advanced 0.6 percent to 101.86 yen. Japan’s currency was little changed at 78.62 per dollar.
The 17-member currency strengthened 0.2 percent versus the greenback after the ECB left the main refinancing rate unchanged and agreed to an unlimited debt-purchase program at its previous meeting on Sept. 6.
The euro has risen 2 percent in the past month, according to Bloomberg Correlation Weighted Indexes. The yen fell 1.8 percent in the period, and the dollar dropped 1.5 percent.
To contact the reporter on this story: Lucy Meakin in London at email@example.com.