Currency - Draghi boosts euro, dollar backs up



The euro climbs to a two-week high against the dollar on Tuesday, backed by remarks by Central Bank President Mario Draghi.
The EUR / USD climbed from 0.65% to 1.1254 to 10.48 GMT (06.48 ET), the highest since June 14th.
The euro strengthens after Central Bank President Mario Draghi has indicated that the eurozone economy is strengthening and progressing.
Draghi points out that despite a rising trend in the euro area, the inflation dynamic remains static.
Although the President of the ECB is convinced of the effectiveness of higher inflation, he notes that the macroeconomic recovery process has been slowed by a combination of price shocks, a slowdown in the labor market and Change in the relationship between inflation and slowdown.
The euro rose against the yen on Draghi's remark, with EUR / GBP up 0.48% to 0.8831 and EUR / JPY rose 0.58% to 125.78.
The US dollar , which measures the strength of the greenback against a basket of six major currencies, is down 0.49% to 96.62.
The dollar declines against the yen, with the USD / JPY falling 0.12% to 111.75 while investors await comments from the Federal Reserve Janet Yellen.
His comments will be carefully monitored in search of clues about the timing of the next rate hike by the Fed. The president could answer questions about her $ 4.5 trillion balance sheet relief program.
Recently published figures have shown a decline in inflation and are challenging the Fed's plans to raise rates.
The pound rose against the dollar, with GBP / USD advancing by 0.2% to 1.2748.
Earlier Tuesday, the Bank of England advocated that British banks retain more than 11 billion pounds of reserves to cover the potential losses suffered by a possible economic crisis.
In its financial report, the BoE has revised its market rate to 0.5% from zero, which means that financial institutions will have to retain 0.5% of their capital in order to cover the potential losses suffered by a weakening of the economy.
The BoE says it plans to raise this rate to 1% in November.
The report shows that the bank works against cyber crime and continues its efforts to mitigate the financial risk for the Brexit.

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