Euro may hit $1.40 before end of year

SUDDENLY the rediscovery of inflation in the United States by the Federal Reserve, their central bank, has sent currency markets into a tizzy.

Without much warning, the interest rate outlook has hardened not just in the US but in the European Central Bank also.

Earlier this week, the Economic and Social Research Institute was forecasting a 0.25% hike in rates by the ECB this year.