Friday, June 2, 2023

The euro falls below US$1.0750 after the rise in US inflation.

He euro depreciated today below the US$1,0750after the publication of the rise in US inflation in April, which could necessitate further increases in the interest rates.

The euro was exchanged around 15:00 GMT at $1.0717, against US$1.0730 in the last hours of the European currency market trading of the previous day.

He European Central Bank (ECB) set the reference exchange rate for the euro at US$1.0751.

The price index for personal consumption expenditures, the one most fixed by the Federal Reserve (Fed) to decide its monetary policy, rose 0.4% in April compared to the previous month and 4.4% more than a year earlier.

excluded food and energyprices rose in the US in April by 0.4% from the previous month and by 4.7% from the previous year.

Are figures support the idea that the Fed has to raise its interest rates more and that it will not cut them this year and for this reason the dollar.

Data showing this week that the american economy grew by 1.3%, 0.2 percentage points more than in the preliminary calculation, these expectations increased.

The president of the Dutch central bank De Nederlandsche Bank, Klaas Knot, considered in an interview with the German newspaper “Handelsblatt” that the ECB should raise its interest rates in June and July, at least 25 basis points each time, due to that inflation it is very high.

The single currency it was changed in a fluctuation band between US$1.0715 and US$1.0758.


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