Euro rises near 2-week high after Saudi oil attacks

2019-09-16 12:05:03 GMT (
Euro rises near 2-week high after Saudi oil attacks

Euro rose today for the third consecutive day against US dollar, near the 2-week high that was reached on Friday, on investors risk aversion due to the tensions in the Middle East, after sabotage attacks on 2 Saudi oil facilities.


EUR/USD rose by more than 0.1% to $1.1086, from the opening of $1.1073, with a low of $1.1066.


Euro rose by 0.1% vs. dollar on Friday, to a 2-week high of $1.1095, after the ECB stimulus decisions.


During last week, euro posted a 0.4% gain against dollar, its second weekly gain, after the ECB stimulus decisions, which was lower than forecasts.


The ECB decided on its last meeting on Thursday, to cut the rate by 10 basis point to -0.5% and launched a bond-buying program worth 20 billion euros per month (about $22 billion) starting from November.


The deposit rate cut came in line with forecasts, while the bond-buying program was was estimated to reach 30 billion euros per month starting from October.


The Bank's Chairman, Mario Draghi, said that the new quantitative easing program and the rate cut are to counter the growing risks.


Draghi, whose mandate expires in October, ruled out the possibility of a near recession for the European economy, but said that the risks are rising, while the rate cut came in response to the continued weak inflation.


In Saudi Arabia on Saturday, a sabotage attacks were done on 2 Aramco oil facilities in Abqaiq and Khurais in the Eastern region, which led to the stoppage of 5% of the global supply production.


The Yemeni al-Houthi group which is backed by Iran claimed responsibility for the attacks, but the US blamed Iran, which is escalating the Middle Eastern geopolitical tensions.


While on Monday, Iran rejected responsibility in the attacks, and said that it's unacceptable and invalid.


A senior US official said that the attacks indicate Iran's involvement, not the Yemeni Houthi group.

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