Investors in Asia are speculative that the European Commercial Bank will not cut interest rates because of the rise in inflation, and as a result, the U.S. Dollar weakened in Asian markets on Tuesday, March 31, 2008. According to reports, consumer prices in the Euro Zone increased by 3.5% in March, which is significantly higher than the 2% target set by the European Commercial Bank. This increase is also the highest in 15 years and it confirms investors’ speculation that the European Commercial Bank will hold interest rates steady.

Comments are closed.