Friday, December 8, 2023

The euro falls to US$1.0950 due to risk aversion

He euro depreciated this Tuesday to the threshold of the $1.0950 due to the aversion to risk that drives purchases of the green ticket and the lack of relevant economic data that will boost its price.

The euro was changing around 03:00 GMT at US$1.0961, compared to US$1.1024 in the last hours of the negotiation European currency market of the previous day.

He European Central Bank (ECB) set the reference exchange rate for the euro at US$1.0959.

The aggressive comments of some members of the Governing Council of the ECB did not contribute to the appreciation of the euro.

The Governor of the Bank of Latvia, Martins Kazakstold Bloomberg that the ECB could raise interest rates much more than is now expected and that the increases may not end in July.

The governor of National Bank of SlovakiaPeter Kazimir, considered that the ECB has a lot of work to do despite the recent drop in inflation and that they will have to raise prices interest rates for longer than expected.

“The slowdown The pace of interest rate rises to 25 basis points is a step that allows the ECB to gradually increase them for longer if necessary and the data warrants it,” according to Kazimir.

The president of the German Bundesbank, Joachim Nagel, also considered in an interview with the newspaper “Frankfurter Allgemeine Zeitung” that more interest rate increases were necessary in the euro zone to fight inflation.

The ECB raised its interest rates by a quarter of a point last week, up to 3.75%, and the deposit facility up to 3.25%.

The single currency was exchanged in a band of fluctuation between US$1.0943 and US$1.10.


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