The euro reached the highest level in more than a year today against the US dollar on the speculation that the European Central Bank not only will raise its benchmark interest rate tomorrow, but will continue to increase the rates further in the future.
Analysts say that the ECB will boost its minimum bid rate by 25 basis points, from 1 percent to 1.25 percent, on the meeting of its policy makers tomorrow. The question how higher borrowing costs will affect the most indebted economies of the region remains.
EUR/USD jumped today from 1.4221 to 1.4310 as of 14:30 GMT and reached the intraday high of 1.4316, the highest rate since January 2010.
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