Strategist: Euro may rise above 1.20 US dollars, influenced by the divergence in policies between the European Central Bank and the Federal Reserve.

Yuxin's The Investment Institute strategist said that if the European Central Bank raises interest rates later this year while the Federal Reserve lowers rates, there is room for the euro to return above $1.20. They stated in a report that the European Central Bank may keep rates unchanged on Thursday as the bank waits for more information on the impact of the war on inflation. However, they said that the bank may raise rates in June and September. In contrast, the Federal Reserve may lower rates in December. The narrowing interest rate differential could push the euro to its peak of $1.2078 since the beginning of the year, although it may only happen "after the current war-driven risk premium completely disappears." The euro rose 0.2% to $1.1739.