In Science and Space: The euro posted a series of gains on Thursday on hopes of progress in Ukraine peace talks, but strong inflation data kept investors on the lookout for a possible tightening policy from the European Central Bank. Analysts remain cautious about further euro gains as Russian forces prepare for renewed attacks in eastern Ukraine, but no quick resolution is expected from peace talks to resume on Friday.
Euro rose 0.05% to $1.1160 after reaching $1.1184, its highest level since March 1st. “The ECB will probably be reluctant to make explicit commitments unless the risks of the energy crisis and the serious economic consequences of the war in Ukraine are avoided,” Commerzbank currency analyst Antje Prefke said in a client statement. “So it will be some time before the euro rises sustainably,” she added.
The Norwegian krone fell about 0.7% against the euro and the dollar to 9.6162 and 8.6176 respectively after oil prices plunged as the US considered releasing up to 180 million barrels from its strategic oil reserves. The Norwegian currency was on the verge of reaching 9.4424 against the euro, its highest since October 2018, and 8.5675 against the dollar, its highest since November 2021, in last week’s rally of Brent crude oil futures.