EUR/USD above 1.3870 ahead of Inflation Test

The euro held firm against the dollar on Tuesday after a solid performance the day before as expectations for additional stimulus from the European Central Bank waned.

The common currency rose 0.1 percent to $1.3862, having pulled up from Monday’s intraday low near $1.3815. The euro also rose 0.1 percent to 142.10 yen, well above a one-week low of 140.99 yen that had been set on Monday.

Moves among major currencies were muted in Asia, as a public holiday in Japan dampened trading activity.  A source said ECB President Mario Draghi had told German lawmakers the central bank was still a long way off from implementing a bond-buying program even in the face of persistently low inflation.

Reuters

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