Even if pressure continues and the euro slips a bit farther, there seems to be a strong level of support near 1.4000, particularly as long as speculation surrounding a European Central Bank rate hike remains strong.
The chances are rising for a European Central Bank rate cut from the 1% overnight rate currently, and those chances increase if the Greek election result suggests that the country is giving up on its agreement with Germany to lower its debt and cut spending.
Government and central bank interest rate and stimulus policies are still being formulated, adjusted and implemented.
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While the benchmark borrowing cost may have risen, the central bank left the bank rate unchanged at 6%.
An implosion of the U.S. housing market, ironically overheated by a previous round of central-bank rate cuts, has slowed the world economy, sparking recessions in the United States and Europe.
On Thursday, the European Central Bank cut its official deposit rate for overnight lending to the central bank by 50 basis points, to 1.0%, below its 2.5% benchmark rate, in an attempt to wean banks off the safety of its vaults and thus stimulate interbank lending.
The central bank's rate-setting Federal Open Market Committee also kept its key interest rate at zero to 0.25%.
And in any case the ultra-low central-bank base rate will eventually have to rise, pushing up borrowing costs.
In addition to a two-day summit of European leaders, investors also are focused on the European Central Bank's rate-setting meeting Thursday.
While no increase in interest rates is expected, there is little doubt among investors that the future direction for the central bank s target rate will be up.
The central bank on Friday cut the central parity rate by 0.1 percent to 6.2152 per dollar.
Since it moved to unlimited fixed-rate funding, the central bank has been content to allow the overnight rate to drift much lower than the policy rate.
But the central bank indicated that further rate cuts were possible, citing concerns about further falls in inflation.
In a desperate measure to strengthen the rouble, the central bank tripled its refinancing rate to 150% on May 27th.
In March, the central bank cut its lending rate by a quarter percentage point, which was its second rate reduction in 2013.
He says he would slash wasteful public spending, leaving room for interest rates to fall (the Central Bank's benchmark rate is 10.25%).
Just last week, the European Central Bank raised its interest rate target to 1.25% still well below the 2.6% inflation rate in the Eurozone.
The European Central Bank raised its policy rate by a quarter point in early July in order to send just such a message of intent to price-setters and wage-negotiators.
SEOUL, South Korea (AP) Asian stock markets mostly rose on Monday as investors awaited the European Central Bank's interest rate decision later this week after disappointing U.S. growth data.
Yet now interest rates have gone even higher (this week the central bank raised the overnight rate from just under 30% to 32%), in order to stop the floating currency from sinking out of sight.
On Thursday the European Central Bank and the Bank of England will have interest rate decisions announced.
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The Korean central bank's move came after a similar move in Brazil, where the central bank cut its Selic base interest rate by a quarter of a percentage point to 7.25% Wednesday.
The central bank doubled its main interest rate, but at the cost of killing consumer demand.
The latest GDP numbers may give the central bank leeway to pause on rate increases, analysts say.
On July 7, the central bank raised the overnight borrowing rate by six percentage points to 30%.
Meanwhile, the European Central Bank left its key interest rate unchanged at a record low of 0.75 percent.
The Central Bank has raised its benchmark rate three times this year, taking it from 10.75% to 12%.
Last month, India's central bank cut its key interest rate to 7.75% from 8%, the first such move in nine months.
That made the central bank's benchmark interest rate of 15.75% in April no bargain, but no excuse for three-figure overdraft rates either.
India's central bank cut its benchmark interest rate for the first time in three years, by half a percentage point to 8%.
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