Investing.com - The euro rose to a fresh two-and-a-half year high against the dollar on Thursday boosted by diminished expectations for more easing by the European Central Bank, while the yen rose to one-week highs against the dollar following lackluster data from China.
EUR/USD hit 1.3948, the highest since October 31 2011 and was last up 0.24% to 1.3936.
The pair was likely to find support at 1.3895, the session low and resistance at 1.4000.
The common currency continued to gain momentum following last week’s decision by the European Central Bank to refrain from implementing policy measures to shore up growth in the euro area, despite forecasting low inflation for some years to come.
Speaking Wednesday, German Finance Minister Wolfgang Schauble said interest rates in the euro zone are too low from a German point of view. He also said he doesn’t expect deflation to materialize in the euro zone.
Meanwhile, the yen rose to one-week highs against the dollar after weaker-than-expected data from China added to concerns over the strength of the world’s second-largest economy.
Chinese industrial production rose 8.6% in the first two months of 2014, according to data released on Thursday, missing market expectations for an increase of 9.5%, while Chinese retail sales rose by a smaller-than-forecast 11.8% in the same period.
USD/JPY was down 0.15% to 102.61, having earlier fallen to lows of 102.50.
The weak data capped the euro’s gains against the yen, with EUR/JPY rising 0.16% to 143.10, holding below the last Friday’s nine-week highs of 143.77.