Bloomberg.com: Euro Likely to Gain as ECB Prepares to Raise Rates, Survey Says

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Euro Likely to Gain as ECB Prepares to Raise Rates, Survey Says

Feb. 27 (Bloomberg) -- The euro may advance versus the dollar on speculation the European Central Bank will raise interest rates this week for second time in four months, a Bloomberg survey shows. Forty-eight percent of the 48 traders, strategists and investors surveyed on Feb. 24 from Sydney to New York advised buying the euro against the dollar, compared with 42 percent who said to sell the 12-nation currency. The ECB is raising rates as the region's economy gains momentum and European inflation remains above the central bank's 2 percent target. Bank President Jean-Claude Trichet said Feb. 20 that expectations for rate increases are ``reasonable'' and ``vigilance'' is needed to stem faster inflation.