Market News
Euro hits four-month peak; US dollar languishes on tariff-driven fears - REUTERS
Summary
- Euro rises to four-month high versus US dollar
- Dollar index hits four-month low
- China announces more fiscal stimulus to boost consumption
- Mixed US economic data muddies outlook
- Focus on ECB rate policy decision on Thursday
NEW YORK, March 5 (Reuters) - The euro ascended to four-month highs on Wednesday against the U.S. dollar, as Europe's growth prospects improved after Germany's proposed 500 billion euro ($531 billion) infrastructure fund, potentially offsetting global trade tensions.
The greenback, on the other hand, fell against most currencies, weighed down by an uncertain growth outlook driven by fears about the impact of tariffs on inflation and the economy. Investors are now starting to price in the potential for outright U.S. contraction, with traders on the prediction market Kalshi currently implying a 42% chance of a U.S. recession this year.
