Economics
Euro Surge Is ECB’s Newest Complication for Pandemic Economy
- Currency rose above $1.20 Tuesday for first time in two years
- Lagarde’s predecessor Draghi often fretted about exchange rate
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European Central Bank President Christine Lagarde has a new challenge to worry about on top of a fading economic recovery and a slump in inflation -- a surging currency.
The euro has jumped 12% in just five months since the start of coronavirus lockdowns, climbing above $1.20 on Tuesday for the first time in more than two years. Investors say more gains may well be ahead, and two top ECB officials have acknowledged it’s on their minds.