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© Reuters. The euro exceeds $1.0850, the highest since April 2022
Frankfurt (Germany), Jan 13 (.).- The euro appreciated this Friday above 1.0850 dollars, the highest for nine months, after some comments by members of the Federal Reserve (Fed) after inflation will fall in the US and consumer confidence will improve.
The euro was trading around 4:00 p.m. GMT at $1.0826, down from $1.08 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 $1.0814.
Some members of the Fed, such as the president of the Federal Reserve Bank of Philadelphia, Patrick Harker, and that of Atlanta, Raphael Bostic, were in favor of lower interest rate increases of 25 basis points.
However, other members of the ECB Governing Council, such as the Latvian Martins Kazaks and the Greek Yannis Stournaras, were in favor of raising interest rates in the euro area to a restrictive level.
For this reason, investors are moving away from the dollar and heading towards currencies from regions that could raise their interest rates more sharply, such as the euro area.
Consumer confidence in the US improved in January to the highest in nine months, reflecting easing concerns about inflation.
Headline inflation fell in the US in December to 6.5% year-on-year, six tenths less than in November, and core inflation, which excludes energy and food prices because they are more volatile, increased by 5.7% in December (6% in November).
The Fed has said that the interest rate will go up to between 5 and 5.25%, now it is between 4.25 and 4.5%; while ECB interest rates are now at 2.50%.
The single currency was exchanged in a fluctuation band between 1.0781 and 1.0867 dollars.
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