Euro becoming stronger day by day.

Euro is high from many weeks in the currency markets and yesterday is also no exception. Euro hit a fresh record against the yen owing to the sudden inflation which was more than expected. The Euro is becoming stronger because of its interest rates. The Euro zone interest rates are already high and the European central bank is looking forward to increase its Euro zone interest rates in the coming year.

Mr.Trichet in the European parliament said that the Euro zone inflation would likely to rise again in 2007. The dollar was extensively lower as concerns over slowing growth and organizational disparities in the U.S economy. These reasons have put an end to the U.S dollar’s profit and gave a profitable start to Sterling and Euro. A Currency Strategist at BNP Paribas stated that the dollar is expected to be weak till the end of this year and may continue for first half of New Year 2007. The Euro gained 0.1% against the dollar and Sterling also gained 0.1% against the dollar.Let’s hope that the U.S dollar will make some profits till the end of this year.