NEW YORK, April 29 (Reuters) – The euro rose against the
dollar and yen on Monday after Italy finally formed a
government, ending two months of political uncertainty, but
further gains may be limited given expectations the European
Central Bank will cut interest rates this week.
Italy’s new prime minister, center-left politician Enrico
Letta, named a coalition government on Saturday, a move that
drove Italian stocks higher and benchmark borrowing costs to
their lowest level since October 2010 at an auction on Monday.
NEW YORK (Reuters) – The Bank of Japan’s massive monetary stimulus plan has likely led to an overshooting of yen weakness against the U.S. dollar in the short-term but the longer-term down trend remains intact, Oppenheimer Funds’ Alessio De Longis said on Monday.
“We think the yen underperformance from this point in time on is going to be a more gradual one in terms of pace, speed, and magnitude as well,” De Longis said at the Reuters FX Summit.