Chile’s central bank will probably raise its benchmark interest rate from a record low as the economy’s fastest expansion in more than a decade pushes inflation back up toward policy makers’ target.
The U.S. dollar came under pressure against the euro and pound Monday morning as US stock futures pointed to another higher open. Over the past few days, increased risk appetite has helped eat away at the dollar’s strong May and June gains.The euro strengthened today against the U.S. dollar and the Japanese yen as the report was released, showing that the industrial production grew in the European Union.
Brazil’s real fell for the fourth time in five days, heading for a weekly decline, on concern Europe’s debt crisis is spreading after Hungary warned of a “very grave” situation for its economy.
Revised March quarter GDP data from the eurozone along with industrial production data from Spain are due on Friday, headlining a light day for European economic news.
The euro falls to a four-year low against the dollar on concern mounting writedowns at Europe’s banks and efforts to reduce budget deficits will hamper the region’s economic recovery.
The yen traded near its weakest level in more than a week versus the greenback as gains in stocks spurred demand for higher-yielding assets and after Japan’s Social Democratic Party left a three-way coalition government.
