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© Reuters. The euro, around 1.0950 dollars after aggressive comments from the Fed
Frankfurt (Germany), April 18 (.).- The euro traded today around the level of 1.0950 dollars, after some members of the Federal Reserve (Fed) were aggressive in favor of more rate hikes of interest, such as the president of the Federal Reserve Bank of St. Louis, James Bullard.
The euro was trading around 3:00 p.m. GMT at $1.0967, compared with $1.0918 in the final hours of European currency market trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at $1.0972.
Bullard told Reuters that interest rates must rise because there is no clear progress with inflation, he considered that interest rates will be at a restrictive level in a range between 5.5 and 5.75% and that he is in favor of keep them there for a while until inflation comes down.
Fed rates are now in a range between 4.75 and 5%.
The number of new construction starts and new building permits fell in March in the US, data that shows that the US housing market weakens after the increase in mortgage interest rates and inflation.
The latest data on the US economy led to the belief that the Fed will not lower interest rates this year and will raise them again in May.
In addition, several of its members have been aggressive in favor of further increases in the price of money.
Weak economic data from the eurozone did not contribute to euro purchases.
Investor confidence fell again sharply in Germany in April, the second consecutive drop, given the forecast that the current situation of the economy will not improve in the next six months.
The single currency was exchanged in a fluctuation band between 1.0921 and 1.0983 dollars.
