Euro continues to rise against dollar, but Trump's threat curbs gains

Euro rallied on Thursday against a basket of global currencies to resume gains against the US dollar as the US currency remains under pressure from the growing prospects for the Federal Reserve to cut interest rates this year, while the gains are curbed by the US President Donald Trump's threat of sanctions on the Russian "Nord Stream 2" pipeline, which supplies Nordic countries with natural gas.

As of 08:05 GMT, EUR/USD rose by 0.1% trading at $1.1296, from the opening price of $1.1286 with the highest at $1.1303 and the lowest at $1.1286.

Euro ended yesterday's trading lower by 0.35% against US dollar, after gaining 0.15% the previous day, on the threat of US President Donald Trump.

The dollar index fell 0.1% on Thursday, resuming losses that were suspended yesterday, reflecting the decline of the US dollar again against a basket of major and secondary currencies.

As the US dollar remains under pressure from the increasing possibility of the Federal Reserve cutting interest rates in the next few months as the weak economic data indicate a sharp decline in the growth of the world's largest economy, and also in response to pressures from the US administration that wants low interest rates.

US President Donald Trump said on Wednesday that he is considering imposing sanctions on Russia's Nord Stream 2 gas pipeline and warned Germany not to rely on Russia for energy.

The project is under construction with the aim of extending natural gas to northern European countries. Germany says the project has significant economic benefits, while Eastern European countries see the project as a growing dependence from the EU on Russia.