Euro firms as ECB policymakers calm worries; Norwegian crown shoots up

Euro firms as ECB policymakers calm worries; Norwegian crown shoots up

11 Sep 2020 03:13 PM
 

The euro rose slightly on Friday as traders noted European Central Bank policymakers' calm approach to the euro's recent appreciation, while the Norwegian crown surged on official forecasts the economy will now contract by less than predicted.

After a press conference on Thursday at which ECB President Christine Lagarde said the bank did not target the exchange rate, sources said policymakers had agreed to look through the euro's rise, judging it was broadly in line with economic fundamentals.

Any advance higher in the euro may be curtailed, however, by ECB chief economist Philip Lane's warning on Friday that a strong euro will further dampen price pressures.   

The euro was last trading up 0.2% at $1.1841, though it had reached $1.1917 the day before, an eight-day high.

The Norwegian crown rose 0.8% to 9.0215 against the U.S. dollar after the Norwegian statistics bureau now expects the economy to contract by 3.2% this year, less than the 3.9% drop predicted in June.