The euro hovered near a one-month high against the dollar on Monday, boosted by expectations of a European Central Bank rate increase and a fresh Greek bailout deal, while U.S. growth concerns sent stocks tumbling, according to Reuters. The single currency continued its recent strong run after a positive review of Greece's accounts by international lenders on Friday allayed fears of a near-term default and opened the way for an injection of fresh funds. Key for the euro, it also leaves the path open for a further near-term rate hike as the European Central Bank looks to rein in inflation. The ECB is expected to signal a July increase at its policy setting meeting on Thursday. "We believe that the ECB is set to signal on Thursday that the next rate hike will be in July and this positive interest rate dynamic will continue to help the euro," said Elsa Lignos, currency strategist at RBC Capital Markets. The euro was trading at $1.4622 at 0806 GMT, with a test of $1.50 expected in the coming weeks if the currency can push through resistence at $1.4710.
