Economics
Euro Rises as Nowotny Says No Negative-Rate Plan; Krone Falls
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The euro rose against the dollar and yen after European Central Bank Governing Council member Ewald Nowotny said markets over-interpreted a signal yesterday that the ECB would consider a deposit rate below zero.
The 17-nation currency slid the most in two weeks versus the greenback yesterday after central bank President Mario Draghi said policy makers had an “open mind” on reducing the deposit rate below zero for the first time. The ECB has “no plan in this direction,” Nowotny told CNBC in an interview. The Dollar Index fell before a U.S. report forecast to show employers stepped up hiring in April. Norway’s krone weakened against the euro after manufacturing contracted.