The dollar reached a new two-year high against the euro after intensified speculation that the Federal Reserve is closer to an increase in the interest rate, which can happen a lot sooner than expected periods. A week ago, the dollar weakened by 1.9% against the single European currency as vice-president of the European Central Bank announced that the Council of Europe voted for retention of quantitative easing, and so far not available. The dollar traded at 1.2220 per euro, reaching up to 2-year lows. The euro tumbled 11 percent from June, until now against the greenback. “If the ECB taking quantitative easing measures, including the purchase of bonds, it will seriously affect the euro, because they all believe that these incentives are needed, but we believe there are many reasons to come to such” said from St. George Bank Ltd.
The yen fell against most of the world currencies after the Bank of Japan announced that it continues with its policy to increase incentives to seek the goal of inflation of 2%. In the Asian session, the yen reached 119.43 per dollar and against the single currency JPY marked price of 146.15 Japanese currency weakened by 15% against the dollar since October of the Bank of Japan announced that starting a program for the purchase of bonds. “From the Federal Reserve expected to rise interest rates in the middle of next year, while in Europe and Japan are expected strengthening incentives to depart this period. The dollar will continue to be strong and preferred to buy yen, “said the Ueda Harow Ltd.
New Zealand kiwi fell 0.5 percent to 77.25 cents after Westpac Banking Corp. index of consumer expectations fell to 114.8 for the fourth quarter, the lowest level for the quarter from March 2013 onwards.