The euro rose in the European market on Thursday against a basket of global currencies, extending its gains for the second consecutive day against the US dollar and hitting a three-month high, amid strong demand for the single currency, especially after the US Treasury Department intervened in the US bond market to curb long-term bond yields.
As global oil prices continue to rise this week, inflationary pressures are mounting on monetary policymakers at the European Central Bank, increasing the likelihood of a European interest rate hike in September.
Price overview
Euro exchange rate today: The euro rose against the dollar by 0.15% to $1.1694, its highest level since May 14, from an opening price of $1.1677, and recorded a low of $1.1670.
The euro ended Wednesday's trading session up 0.9% against the dollar, its fourth gain in the last five days and its biggest daily gain since March 19, supported by the US Treasury Department's intervention in the US debt market.
US dollar
The dollar index fell 0.1% on Thursday, deepening its losses for the second consecutive session and hitting a three-month low of 98.70, reflecting the continued decline of the US currency against a basket of major and minor currencies.
The dollar was heavily sold off following the measures announced by the US Treasury Department to calm the bond market, which had seen long-term bond yields rise to their highest levels since 2007.
U.S. Treasury Department
The U.S. Treasury Department has unveiled plans to double the size of its long-term bond repurchase operations in an effort to support liquidity and calm turmoil in the bond market, after a sharp sell-off pushed the yield on 30-year Treasury bonds to its highest level in 19 years at 5.337%.
