Euro is at a 9-month peak following European indications of continued monetary tightening

On Monday, the euro reached a nine-month high against the dollar, as comments indicating the European Central Bank’s intention to raise interest rates by large rates were met by market expectations of a less hawkish approach by the Federal Reserve.

The euro reached $1.0927, surpassing a recent peak at $1.08875, to trade at its highest level since April of last year.

He was helped in this by the comments of European Central Bank Governing Council member Klaas Knut, who said that interest rates will rise by 50 basis points in both February and March and will continue to rise in the following months.

The British pound rose to $1.24475, the highest level in seven months.

The dollar index fell 0.2 percent against a basket of competing currencies, including the euro and the pound sterling, at 101.73, just a little off an eight-month low of 101.510.

However, the dollar managed to hold its ground against the yen after the Bank of Japan defied market pressure to reverse its ultra-easy bond policy. And the dollar increased 0.2 percent, recording 129.875 yen, after severe fluctuations last week, between 127.22 and 131.58.