LONDON—The euro firmed to a one-week high on Monday, benefiting from the dollar’s retreat after several Federal Reserve officials signaled they did not favor stepping up the rate hiking pace.
The comments late last week knocked the dollar off two-decade highs and boosted global stocks and non-dollar currencies, especially the euro.
The greenback index, measuring its rate against six global currencies, is now almost 2 percent off last week’s peak and by 1030 GMT, stood 0.5 percent lower at 107.27.
The euro, the main component in that index, firmed 0.7 percent at $1.016, having plunged last week below parity to the dollar.
“With equity markets still in positive territory, risk appetite is back so the comments from Fed governor (Christopher) Waller, ramming back on the 100 bps rise, have had the desired impact,” said Derek Halpenny, head of research at MUFG….