Euro-dollar rate

The US dollar hit a 9 year high against other major currencies amid speculation that real interest rates in the US will rise relative to the Euro, the world’s second most important currency, as the ECB is likely to launch a round asset purchasing leading to quantitative easing.  Indeed, the Euro itself hit a 9 year low, dipping under $1.20, at $1.194. Markets are concerned that the outlook for the Eurozone looks poor, with worries of a possible Greek exit - which now seems supported by Angela Merkel. At the same time it is expected that the US Federal Reserve will raise rates.

Sources: FT.Com; Bloomberg