Investing.com - The euro rose to one-month highs against the dollar on Monday boosted by reports that the European Central Bank discussed the possibility of raising interest rates before ending its stimulus program.
EUR/USD hit highs of 1.0715, the most since February 9 and was at 1.0683 by 08.54 GMT.
The single currency gained ground after Reuters reported that some ECB policymakers had suggested raising rates from their current record lows before the end of the bank’s asset purchase stimulus program.
The euro’s gains were held in check amid heightened expectations that the Federal Reserve will hike interest rates at the outcome of its two-day policy meeting on Wednesday.
Friday’s U.S. nonfarm payrolls report for February did little to alter expectations for a rate hike this month.
The Department of Labor reported that employers continued to hire workers at a solid pace last month and wages also rose, albeit at a slower pace than some economists had expected.
Futures traders are pricing in around a 90% chance of a hike at the Fed meeting, according to Investing.com’s Fed Rate Monitor Tool.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.26% at 101.12, after falling to two-week lows of 100.86 overnight.
The dollar dipped against the yen, with USD/JPY easing 0.12% to 114.66, off Friday’s seven-week highs of 115.49.
The pound pushed higher against the dollar and the euro, with GBP/USD rising 0.41% to 1.2219, pulling away from last week’s eight week trough.
EUR/GBP was down 0.5% at 0.8735 as markets braced for Britain to trigger Article 50 later in the week, to begin the process of exiting the European Union.