The euro was stronger on Tuesday on new data that tended to reinforce the expectation that eurozone interest rates will be raised again. The probability that the European Central Bank will send rates higher in May has been estimated at anywhere from 50 percent to 90 percent, and some analysts even suspect that a hike might come in April. Among the data adding credence to these predictions are a higher Ifo business sentiment index out of Germany that put sentiment at a 15-year high in March. Additionally, the eurozone’s M3 broad money supply was up to 8 percent in February, from 7.6 in January.

At mid-day in New York, the euro had gained 0.5 percent to $1.2070 versus the US dollar. The shared currency was up by 0.9 percent to ¥141.50 in relation to the Japanese yen, and it rose 0.4 percent to £0.6902 against sterling.

Tags: Exchange Rates News, Interest Rates News //