Euro recovers after Duisenberg's comments

The euro today recovered losses made in the previous session after ECB President Wim Duisenberg warned of further euro zone rate…

The euro today recovered losses made in the previous session after ECB President Wim Duisenberg warned of further euro zone rate cuts, as markets also looked to further US easing.

Mr Duisenberg said in two newspaper interviews that the central bank had room to manoeuvre on interest rates, adding that a strong euro was unfavourable for exports to the United States.

The euro rose a quarter percent from the US close to $1.17 by 8:20 a.m., more than two cents below record highs set last month and in the middle of recent ranges.

Analysts said options barriers at $1.19 and $1.1650 were restricting the single currency's movements.

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US interest rates are currently at 1.25 per cent, and further rate cuts are also widely expected.

The Fed's Beige Book summary of US economic conditions is due at 7 p.m. Irish time.