It was trading below par again, meaning it was worth less than a dollar, as it had been the week before. The euro was at a similarly low level about twenty years ago. The European Central Bank (ECB) had set the reference rate just above parity on Friday at 1.0007 (Thursday: 0.9970) dollars. In New York, the euro was trading at $0.9971 around 9 p.m. on Friday.
The euro is under pressure mainly because of the appreciating dollar. The US currency is receiving a tailwind from monetary policy. At the end of last week, US Federal Reserve Chairman Jerome Powell gave top priority to the Federal Reserve’s fight against high inflation. This points to further significant interest rate hikes and goes against expectations on the financial markets that the Fed could start considering interest rate cuts as early as next year in view of economic problems.
Source: Nachrichten
