ECB rate hike possibility hurts $

Sunday, 3 April 2011 08:01

The growing belief that the European Central Bank will be the first central bank to raise interest rates at a policy meeting next Thursday put pressure on the dollar this last week.

The euro rose 0.5 percent to $1.4231 , well off a $1.4059 low.

Traders said stop-loss orders around $1.4060 led to some euro buying.

The single currency has risen some 6 percent in 27 days — from a low of $1.3428 on Feb. 14 to $1.4249 last week, the 2011 high.

Traders said a break of that level could prompt a run at $1.4283, the Nov. 4 peak.

The U.S. Dollar Index, which pits the greenback against a basket of major currencies, was off 0.02 percent at 75.842.