Euro climbs to three-week high

On Ukraine gains, rate hike forecasts
Euro climbs to three-week high
U.S. Dollar and Euro banknotes (Image credit: Reuters)

The euro rose more than 1 percent against the dollar during trading on Monday, boosted by reports that Ukraine had retaken control of some lands from Russia, as well as expectations that the European Central Bank (ECB) would continue to raise interest rates.

German Central Bank President Joachim Nagel said that if the inflation remains unchanged, more decisive steps, such as raising interest rates, should be taken, Bloomberg reported. 

The euro climbed 1.29 percent against the dollar in the morning, reaching 1.0172 dollars, its highest level in more than three weeks.

Despite the euro’s slight recovery, it is still down more than 11 percent this year due to the energy crisis, which has harmed the region’s growth prospects.

Moreover, JPMorgan Chase and Saxo Bank expect the euro to fall to 95 cents by the end of the year.

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