Euro Firm as Bets on ECB Action Grow
The euro climbed on Tuesday, hovering near a one-month high against the dollar and supported by expectations the European Central Bank will act soon to lower borrowing costs for Spain and Italy.
The Australian dollar also rose to its highest in more than four months after the central bank kept interest rates unchanged at 3.5 percent and dropped few hints it was in a hurry to ease again.
Rising expectations that the ECB could step in as early as next month to reduce crippling Spanish and Italian borrowing costs have sparked a global rally in risky assets since Friday, giving a lift to the euro as well as the Australian dollar.
