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Friday, 24 November 2006— Bloomberg:- The euro rose to $1.30 for the first time since April 2005 on speculation the European Central Bank will keep raising interest rates in 2007. The currency has gained 10.4 percent this year as the euro- region is poised to grow at its fastest pace in six years. The French government today said business confidence in the region's second-largest economy held near the strongest in five years. The ECB has raised rates to an almost four-year high and President Jean-Claude Trichet on Nov. 20 said inflation remains a threat. ``There's a psychological significance to the $1.30 level,'' said Tim Fox, a currency strategist in London at Dresdner Kleinwort. ``We remain optimistic on the European economy. There'll be another rate hike next year.'' Against the dollar, the euro traded as high as $1.3109 and was at $1.3084 at 11:36 a.m. in London, from $1.2945 yesterday. It traded at 151.43 yen, after reaching a record of 151.67 on Nov. 20. The dollar was at 115.75 yen, from 116.30 yesterday. Traders place automatic orders, or so-called stop-losses, at preset levels to sell the currency after it breaches certain key levels, |
