Euro Below $1.37 Following Fed Minutes
The euro was steady at $1.3665 at 6:00 GMT on Thursday morning after falling to a three and a half month low against the dollar on Wednesday.
The dollar gained some momentum following the release of the Federal Reserve’s meeting minutes while the euro was weighed down by expectations that the European Central Bank will ease further in June.
Fed minutes, released on Wednesday, indicated that the bank’s plans to reduce its stimulus spending would remain on track despite comments from some of the bank’s participants earlier in the month.
Some of the Fed’s board members remarked that it was too early to determine whether or not the US’ economic growth was strong enough to stand on its own; but the meeting minutes suggested that the bank has no plans to derail its tapering.
Meanwhile, eurozone policy makers are working to reduce the region’s dependence on Russian natural gas in case the situation in Ukraine worsens and Moscow shuts off its gas supplies.
The Wall Street Journal reported that the bloc’s leaders are intensifying their efforts to draw up the plans as Moscow has been threatening to cut off gas supplies to Ukraine over an unpaid debt. The new strategy is expected to be finalized for review by the end of June.
Also weighing on the euro has been European parliamentary elections, set to wrap up at the end of the week.
With many nations still struggling with sky high unemployment, some are worried that protest votes cast for euro-skeptic parties could create a period of instability for the bloc.
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