Euro Falters After Eclipsing Key Level as ECB’s Lane Weighs In
- Reaches $1.2011 before falling; it’s up 12% from March lows
- ‘Euro-dollar rate does matter,’ says ECB’s Philip Lane
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The euro broke above $1.20 for the first time in more than two years and then struggled to maintain its momentum, pressured in part after a European Central Bank official said the exchange rate matters for the region’s economy.
Europe’s common currency touched $1.2011 on Tuesday, its highest since May 2018, before tumbling back to $1.1907, or 0.3% lower on the day. Options-related selling around the day’s highs and a rebound in the dollar helped fuel the reversal, as did ECB member Philip Lane’s comment that euro’s level “does matter” for monetary policy.