©Reuters. The euro defends itself against the dollar despite the tension due to inflation
Berlin, May 18 (.).- The euro remained this Wednesday at levels similar to those of the day before, around 1.05 dollars, despite concerns about inflationary tensions, the geopolitical crisis due to the war in Ukraine and on the eve of the G7 finance ministers’ meeting in Germany.
The euro was trading around 1500 GMT at about $1.049, versus $1.0533 in late European forex trading the previous day.
The ECB set the reference exchange rate for the euro at 1.0523 dollars.
The exchange rate between the euro and the US currency remained at those levels while in Bonn (Germany), the US Treasury Secretary, Janet Yellen, asked about the consequences of the rise in the dollar, stressed that Washington is committed to a rate “market-determined” exchange rate, as this is the “best model”.
It is natural that in times of uncertainty many investors take refuge in the US currency, apart from the fact that the “tightening” of monetary policy also attracts capital flows, said the US official, who has participated since Thursday in the meeting of finance ministers. and G7 central bank governors.
After Yellen’s words, the euro gave up a bit in the foreign exchange market, falling below 1.05 dollars.
