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US banking turmoil: Euro gains to $1.0734

US banking turmoil: Euro gains to $1.0734
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Image: FRED TANNEAU (AFP)

At the same time, it is the highest level for about a month. The European Central Bank (ECB) set the reference rate significantly lower on Friday afternoon at 1.0586 (Thursday: 1.0554) dollars. The US dollar was under pressure against many currencies. The triggers are falling interest rate expectations of the US Federal Reserve due to the turbulence in the American banking sector. Over the weekend, the Treasury Department, the Federal Reserve and the Deposit Insurance Agency said deposits at the struggling Silicon Valley Bank (SVB) and another institution would be protected. The Fed launched a new lending program to provide banks with liquidity.

This initially calmed the situation on the financial markets. At the same time, however, expectations regarding the course of the US Federal Reserve were scaled back. The big US bank Goldman Sachs no longer expects another rate hike for the next Fed meeting in just over a week. Falling interest rate expectations weighed on the dollar and buoyed other currencies such as the euro.

Source: Nachrichten

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