Euro rose in European trade against dollar for another session as bets recede on US policy tightening before 2023, while inflationary pressures start to be noticed in Europe after prices rose in May by fastest rate in three years.
EUR/USD rise 0.15% to 1.2241, after closing up 0.3% yesterday, the second session in three days as risk sentiment improves.
Euro rallied 1.7% in May against the greenback, the second monthly profit in a row after confirmations from US policymakers that current inflation increases are transient and won’t lead to policy changes.
The dollar index fell 0.1% on Tuesday for another session against a basket of major rivals.
Investors continue to seek evidence on higher prices in US and improving labor market to gauge the probable timing of policy tightening.
In Europe, inflation prices rose by the fastest rate in three years, raising questions about possible tightening of policy and cutting…