Euro hits 2014 high vs dollar after inflation tops forecasts

LONDON Fri Feb 28, 2014 5:10am EST

LONDON Feb 28 (Reuters) - The euro rose to its highest level against the dollar this year after euro zone inflation came in above expectations, easing pressure on the European Central Bank to loosen monetary policy next week.

The euro rose as high as $1.37940 after February flash inflation came in at 0.8 percent year-on-year, ahead of expectations of a 0.7 percent rise. The euro had been trading at $1.3725 beforehand.

German Bund futures fell to the day's low of 144.72 after the inflation data, to trade 35 ticks lower on the day. Euribor futures slipped and Eonia forward rates inched higher.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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