Euro May Rise on Global Growth
The euro may set a record high of $1.62 within three months as surging global trade shows the world economy remains strong, keeping the European Central Bank from cutting borrowing costs, according to Bank of Tokyo- Mitsubishi UFJ Ltd.
The Baltic Dry Index, which tracks transportation costs on international trade routes, rose to a record today and has increased 32 percent this year.
The Baltic Dry Index rose 0.7 percent to 11,793 points, according to the Baltic Exchange in London today. The daily correlation between movement in the index and the euro-dollar exchange rate has been 0.87 for the last four years, with the former leading the currencies by five working days.
Crude oil rose above $129 a barrel in New York for the first time today after hedge-fund manager Boone Pickens said that oil will reach $150 a barrel this year because supply isn’t keeping up with demand.
The euro rose 1.1 percent to $1.5675 yesterday, and reached the highest since April 28, as speculation increased that the ECB will keep its benchmark interest rate at a six-year high of 4 percent.
The euro touched $1.6019 on April 22, the strongest since its debut in January 1999.
Euro is at posting time (08:15 - GMT+8 ) at 1.5657.
fvarga
