Euro, pound fall back against dollar

LONDON: The euro and pound fell against the dollar Monday after rallying last week when central banks signalled tighter monetary policy in reaction to solid economic growth and high inflation.

As the year’s second half got under way, European stock markets rebounded from heavy falls ahead of the weekend.

The dollar last week tumbled after the ECB, Bank of England and Bank of Canada indicated that the age of cheap cash — in place since the financial crisis — was drawing to a close as the world economy gets back on track.

“I think the coordination of language reflects a coordination of the recognition that the global economy is pointing higher and the time for emergency policies in individual jurisdictions has ended,” Greg McKenna, chief market strategist at AxiTrader, said Monday.

During the first half, the euro jumped about ten per cent against the dollar, while the pound gained almost as much from its January lows, despite British political uncertainty caused by the country’s decision to leave the EU.

— APP/AFP