Investors shrugged off concerns over European peripherals, instead focusing on the German economic powerhouse, prospects for which are “very positive”, said German chancellor Angela Merkel in a speech in Singapore, as she reiterated her support for the single currency.
The euro traded at $1.4379 early in London on 2 June, around 50 points higher, and near a three-week high.
European Central Bank (ECB) president Jean-Claude Trichet said on Wednesday that the bank “will continue to deliver price stability” after inflation in the euro region hit 2.7 percent in May, above the ECB’s 2 percent limit.
The bank raised its key interest rate to 1.25 percent in April, while traders do not expect any rise .....
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