Investors in the European session were adorned by an increase in euro trading supported by statements by European Central Bank (ECB) policymakers on interest rate hikes to curb inflation.
Euo rose 0.6% stronger against the U.S. dollar after ECB Chief Economist Philip Lane said the central bank would raise rates by 25 basis points at its July meeting.
He also proposed an increase of 50 basis points in September, in contrast to President Christine Lagarde’s previous statement for an increase of just 25 basis points.
Policymaker Olli Rehn also gave a similar view that the likelihood of a hike in September is greater than 0.25%.
Meanwhile, ECB policymaker Francois Villeroy de Galhau said the central bank's plan instruments against financial fragmentation must allow it to support its commitment to defend the euro.
On the opposite side, the greenback dollar remained traded lower against most major currencies with market focus now focused on Federal Reserve (Fed) Chairman Jerome Powell’s testimony before Congress on Wednesday.
The decline has benefited other major currencies to rise, but the movements recorded have been insignificant.
Two more Fed policymakers will make public statements on Tuesday, in which market players will scrutinize their comments to get clues about their views on current monetary and economic policy setting.
