Euro leaps to 4-year highs
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LONDON, England (CNN) -- The euro soared to fresh four-year highs against the dollar, sterling and yen on Tuesday.
Its more than eight percent rise since the beginning of the year has been fueled by persistent concerns about the state of the U.S. economy, the world's biggest and engine of global growth.
The Federal Reserve is expected to announce its interest rate decision at 1815 GMT. Economists predict the central bank will leave the cost of borrowing at 1.25 percent -- its lowest level in four decades.
But Fed watchers do expect the bank to say the economy is still in decline.
"This is a general move against the dollar,'' Rob Hayward, senior currency economist at ABN Amro, told Reuters. "The market doesn't believe they will cut at this stage but if they are able to make an assessment on the economy, people expect the risks are on the downside which would point to a cut in June.''
The euro surged to $1.1341 in early London trading -- its highest in four years.
The currency, used by the 12 nations of the eurozone, was worth 134 yen, also a four year high, while sterling fell to a four year low at 70.39 pence.
The European Central Bank is expected to leave interest rates at 2.5 percent on Thursday. Investors typically switch money to regions and countries where they can earn the most interest.
