Dollar sags below 20-year peak as euro lifted by ECB bets

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Dollar sags below 20-year peak as euro lifted by ECB bets
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TOKYO : The dollar languished on Tuesday after being beaten back from a two-decade high versus major peers by a reinvigorated euro. The tables turned for the two currencies as traders began ramping up bets for a super-sized 75 basis-point rate hike by the European Central Bank, while paring the odds for o

TOKYO : The dollar languished on Tuesday after being beaten back from a two-decade high versus major peers by a reinvigorated euro.

The euro edged 0.08 per cent higher to $1.00045, extending Monday's 0.32 per cent rally - which was its biggest in almost three weeks - after failing to keep its head above parity for the past week. Traders see better than 50 per cent odds for a 75 bps move by the ECB on Sept. 8 after a parade of ECB speakers at the Fed's annual symposium in Jackson Hole backed the case for a big hike.

The euro was also helped by a retreat in European gas prices after German economy minister Robert Habbeck said the country was filling gas storage facilities faster than expected.

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